Market Insight

Reliance Communications sells mobile assets to Reliance Jio

January 03, 2018  | Subscribers Only

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Reliance Communications (RCOM) has effectively finalised an exit from the mobile communications market with the sale of assets including spectrum, 43,000 towers, 178,000 route kilometres of fibre and 248 Media Convergence Nodes. These are to be acquired by Reliance Jio, the mobile communications company launched in 2016 by Mukesh Ambani, the brother of Reliance Communications Chairman Anil Ambani, sparking a price war and upturning the Indian mobile industry over the last year. The deal is expected to lead to a reduction in RCOM debt of INR250 billion ($3.9 billion) through a combination of cash to repay loans and reduced spectrum liabilities. Together with a commercial property redevelopment project and an equity investment, RCOM's total debts are expected to be reduced by 85% to INR6 billion ($94 million).

 

Geography
India
Research by Market
Mobile & Telecom
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