Reliance Communications sells its wireless assets to Reliance Jio

MUMBAI, INDIA: Anil Ambani-led Reliance Communications (RCom) has signed an agreement to sell its wireless assets to Mukesh Ambani-led Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL).

The deal consideration comprises cash payment and includes transfer of deferred spectrum instalments payable to the Department of Telecommunication (DoT).

RCom will utilize the proceeds to reduce its debts, while RJio will use the assets for the large scale roll-out of its wireless and Fiber to Home and Enterprise services.

RJIL will acquire assets under four categories – Towers, Optic Fiber Cable Network (OFC), Spectrum and Media Convergence Nodes (MCN) from RCOM and its affiliates, said Reliance Jio in a statement.

The assets include:

- 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands

- Over 43,000 towers, which is amongst the top 3 independent tower holdings in India

- About 1,78,000 RKM of fiber with pan India footprint

- 248 Media Convergence Nodes, covering about 5 Million sqft used for hosting telecom infrastructure

The transactions are expected to close between January and March 2018.