The Department of Telecom (DoT) today gave its approval for the merger of Sistema Shyam Teleservices with Anil Ambani-led Reliance Communications.
RCom in its filing with the BSE on Monday said: “Reliance Communications Limited (RCOM) has received the Department of Telecommunication’s (DoT) approval for the demerger of the wireless business of Sistema Shyam Teleservices Limited (SSTL) into RCom.” After the merger, the number of mobile operators in the country will come down to ten.
According to PTI, the merger was cleared by the DoT on October 20. Under the deal, all wireless business assets of SSTL will now be owned by RCom. However, MTS, the telecom services brand of SSTL, will continue its operations. Moreover, SSTL will also get 10 per cent stake in RCom.
“Rcom will acquire approximately 2 million customers and additional annual revenues of around Rs 700 crore. In addition, RCom will acquire 30 MHz of the most valuable and superior 800/850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint,” the statement said.