SSTL And RCOM Deal To Change The Shape Of Indian Telecom Industry

DELHI, India - Nov. 17, 2015 - PRLog -- Reliance Communications (RCOM) has triggered a demerger of Sistema Shyam Teleservices Ltd. (SSTL), working under the brand name MTS, through a deal between RCOM and Sistema JSFC.

Mr Gurdeep Singh, President & Chief Executive Officer, Consumer Business, Reliance Communication confirmed the deal through a statement, “We are delighted to welcome Sistema Shyam TeleServices Ltd. as a valued shareholder and partner in Reliance Communications Ltd. The combination of our wireless businesses, through the demerger of SSTL wireless business into RCOM for stock consideration, will generate significant capex and opex synergies for mutual benefit. The Indian data market is witnessing explosive growth, and SSTL's proven strengths in that space will further enhance RCOM's capabilities in delivering a superior experience to our valued customers. We are pleased that the addition of SSTL's valuable spectrum holdings in the 800 - 850 MHz band will strengthen RCOM's spectrum portfolio, and extend our ability to provide world class 4G LTE services to our customers in 8 important circles in the country till the year 2033, he added.” The deal will help RCOM to extend its 800/850 Mhz band in 8 big states including Delhi, Gujarat, Karnataka, Kolkata etc., by 12 years, which was only going to run till 2021.

Mr Mikhail Shamolin, President and CEO of Sistema, slated the deal as a milestone, “The merger of SSTL and RCOM's telecom businesses is a milestone event. Despite the numerous challenges the sector faced in recent years, the combination of two leading data service providers is a clear sign of progress for the Indian telecom industry. We are confident that SSTL’s entry into the equity capital of RCOM as a strategic investor will strengthen the competitive position of the combined company and provide subscribers with superior experience by fast tracking the growth of LTE technology in India.

Moreover, we believe the completion of this transaction will serve as an example of growing business ties between Russia and India and encourage other investments between the two countries,” added Mr. Shamolin.

Mr. Sergey Savchenko, CEO of Sistema Shyam TeleServices Ltd. said the deal was an exciting new chapter for India’s telecom industry.“We believe this transaction underscores SSTL’s track record in building the fastest-growingdata services provider. This is an exciting new chapter for India’s telecom industry and we look forward to leveraging our companies’ combined experience for the development of LTE in India.”

Reffrence Link: http://www.sistema.com/press/press-releases/detail/articl...