RCom to merge its wireless telecom businesses with Aircel

Reliance Communications (RCom) has agreed to merge its wireless telecom businesses with Aircel, which will create India’s third biggest telecom operator in terms of subscriber base. RCom and Aircel’s parent, Malaysia’s Maxis Communications will hold 50 per cent each in the merged entity with equal representation on the board and committees.

The deal will help reduce RCom’s debt by Rs 20,000 crore, or more than 40 percent of its total debt, while Aircel’s debt will fall by about Rs 4,000 crore. The new entity will hold the second largest spectrum portfolio among all operators in India across the 850, 900, 1800 and 2,100 MHz bands.

Reliance Communications is India’s foremost and truly-integrated telecommunications service provider. The company has a customer base of over 111 million, including over 2.6 million individual overseas retail customers.