MAGAZINE

Contributed by:
Nancy Chawla (MBA-II)
“R-COM AIRCEL UNION GIVES BIRTH TO A TELECOM Giant”
Reliance communication ltd is an Indian
Internet access and telecommunication
company headquarter in Navi –
Mumbai,India . It provides GSM (voice
2g,3g,4g) mobile services , Fixed line
broadband and voice services. Reliance
Communication is the fourth largest
telecom operator in India with
98.70million subscribers as of june 2016.
ABOUT AIRCEL COMPANY:
Aircel is an Indian mobile network
operator headquarter in gurgaon,which
offers 3G,2G,4G Data services. It is the
sixth largest mobile services provider in
India with a subscriber base of 83.05
million subscribers as of june 2015.
What is the deal all about?
R-Com and Aircel’s majority owner,
Malaysia Maxis Communication Behad
(MCB) has signed definitive documents
for the merger of their Indian wireless
businesses. R-com and aircel will hold
50% each in the new company.
What are the details of the Merged
entity?
The Merged entity will have a net worth of
Rs. 35000 crore and assets base of Rs.
65000 crore. It will hold 451 MHZ of
spectrum pan India- AIRCEL‘s 187.6
MHZ, Sistema Shyam 39.4 MHZand
Reliance com 224 MHZ.
IMPACT:
According to the statement , Rcom will
continue to own and operate it high growth
businesses in the domestic and global
enterprises space, dat center, related
telecom Infrastructure besides owning
valuable real estate.
Most Importantly ,the deal will help
Reliance com the most leveraged listed
telecom player in India cut it debts by
Rs.20000 crore and AIRCEL debts will
fall by about Rs. 4000 crore.
Merger to result in country 4 th largest
operator with assets of 65000 cr and 2 nd
largest spectrum holding after Airtel.
Contributed by:
Simran Verma (MBA-II)