RCom in talks with Aircel to merge mobile biz

New Delhi : Reliance Communications (RCom) is in talks with shareholders of telecom operator Aircel for a potential merger of the wireless or mobile businesses of the two companies.

The Anil Ambani-led telecom company said, "It has entered into a 90-day exclusivity period with Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited, the shareholders of Aircel Limited, to consider the potential combination of the Indian wireless businesses of RCom and Aircel."

RCom is already in the process of merging Indian mobile telephony business of Sistema Shyam Teleservices under MTS brand.

According to sources, the proposal on the table includes operation of mobile business of three companies - RCom, MTS and Aircel, under a new entity led by RCom.

The merged entity will be created through equity deal where RCom's shareholders are looking for three shares against each held by them. The current debt of RCom, estimated to be around Rs 10,000 crore, will be transferred to this new entity and the company will become free of debt, sources said.

"RCom has expressed interest in focusing on enterprise business while the new entity, whose brand and other details will be finalised later, will run mobile business created by using resources of RCom, Aircel and MTS," they said.

The combination of RCom, Aircel, MTS wireless businesses will hold 19.3 per cent of the total spectrum allocated to the the industry - the highest in the country by an entity.