Anil Ambani-led Reliance Communication’s (RCom) to sell its wireless business and associated infrastructure to Reliance Jio has been approved by the Competition Commission of India (CCI). However, an arbitration court has stayed RCom from selling any assets without permission, in a case filed by Swedish company Ericsson. On that front, RCom has moved to Bombay High Court against this interim order.
.@CCI_India approves acquisition of RCOM’s towers, optic fiber cable, right to use spectrum and media convergence nodes by RJIO
— CCI (@CCI_India) March 9, 2018
The all-cash deal between RCom and Jio was finalised in January this year, and will involve the take over of towers, optic fibre cable network, spectrum, and media convergence nodes. While neither Jio nor RCom had divulged the size of the deal, media reports have pegged its value at Rs 18,000 crore.
RCom was debt-laden and this deal would reduce its losses. It recorded major losses in previous quarters, but its planned exit from consumer business, which comprised of wireless, direct to home and PCO, helped cut its losses up to 95% in the quarter ended December 30, 2017.
The company has discontinued its GSM services in eight service areas and CDMA in nine service areas. The company is now allowing customers to generate unique porting codes port out codes on its website, after the Telecom Regulatory Authority of India extended the deadline for porting out of the network to March 20, 2018.
Note: The story will be updated once we have confirmed if CCI’s approval changes the status of the court’s stay order on the deal.