YOU ARE AT:APACReliance Communications sells tower business to Brookfield Infrastructure

Reliance Communications sells tower business to Brookfield Infrastructure

Reliance to receive $1.6 billion for the tower transaction.

Indian telecommunications firm Reliance Communications signed binding agreements with Brookfield Infrastructure to sell nationwide tower assets to affiliates of Brookfield Infrastructure Partners and its institutional partners, the telco said in a statement.

The deal calls for the towers to be “demerged” into a separate new firm, which will be wholly owned and independently managed by Brookfield Infrastructure. The new company will become the second largest independent and operator-neutral towers company in the Indian market.

Reliance will retain certain information and other rights, but will not be involved in the management and operations of the new company. Reliance Communications and Reliance Jio will continue as major long-term tenants of the tower company, along with other existing third-party telecoms operators.

Reliance said it will receive an upfront cash payment of $1.6 billion on completion of the transaction, and will also receive class B non-voting shares in the new tower company, providing 49% future economic upside from the business. The firm said it will use the upfront cash payment to reduce debt. The previously announced combination of Reliance Communications’ wireless business with Aircel, and the monetization of the telecommunications tower business, are expected to reduce the operator’s overall debt by $4.6 billion.

The deal is still subject to approvals from shareholders, lenders and regulatory agencies.

NTT Data conducts field study in China using big data traffic simulation technology

In other APAC news, Japanese company NTT Data said it has successfully conducted an expanded field study of using big data traffic simulation technology to control traffic signals in Guiyang, Guizhou Province, China.

Optimized settings for traffic signals were tested using 220 signals at 19 intersections. During the test, cars passing through the intersections were identified by their license plates.

NTT Data said it’s looking to offer fully automated traffic-control solutions to Guiyang and other cities in China. The Japanese company said it will work with Guiyang to integrate its solution with the city’s total traffic-control system and eventually launch a commercial system for congestion alleviation with automated real-time signal control.

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Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.