Industry News

Reliance Communications partnered with Aircel in India telecom sector

Reliance communications merges with Aircel for wireless business to become the strongest operator in telecom

India: Reliance communications (RCom) signed an agreement with Malaysia’s Maxis communication Berhad(MCB), Aircel’s parent, for merging wireless business making it the largest consolidation ever in Indian telecom sector. 

The merger will create a strong operator clearly ranked amongst India top 3rd telcos in terms of customer base and revenues, the combination of the telecom companies would be 50:50 joint venture. It will also create a substantial long term value for shareholder of both RCom & MCB with significant revenue and cost synergies.

The merge entity will lead in 12 circles giving a tough competition to Kumar Mangalam led Idea Cellular, which is getting squeezed from both ends with the launch of Reliance Jio and this merger. On completion of merger RCom & MCB they are committed to adding more equity for further strengthening the balance sheet and enhance financial flexibility. 

TechSci Research depicts that the merger will help both telecom giants to hold a good market share in terms of customer and revenue base. The merger based company will have the second largest spectrum holding amongst all operators.


Relevant News