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Reliance Communications, Aircel create JV

Indian telecom operators look to complete the operation by September

Indian mobile operators Reliance Communications and Aircel agreed to merge their operations, according to The Economic Times.

The report claims the telcos would each own 50% of the new entity, which will be the third largest operator in India in terms of subscribers. The two firms started a 90-day period of exclusive merger talks on December 22.

The new entity will also retain spectrum in the 2.3 GHz band that Aircel planned to sell to local telecoms group Bharti Airtel.

“The new structure that has been mutually decided is quite simple. The new entity will have to be rebranded and we expect to close the deal by September 30,” the report stated citing a person involved in the transaction.

According to the report, the two telcos will focus on gaining regulatory approval in the coming months and finalizing the management structure of the new firm. Reliance Communications and Aircel are also expected to focus on reducing duplication between the two companies, which will result in a number of layoffs, according to the report.

After the deal is completed, Reliance Communications will focus on certain operations including data centers, direct-to-home TV, corporate services, fiber optic and its sub-sea cable operation.

At the end of September, 2015, Reliance Communications had 110.4 million subscribers, with a market share of over 11%, according to official figures. Aircel had nearly 84 million customers, representing 8.4% market share.

Zong to invest $300 million to expand 3G, LTE services in Pakistan

In other APAC news, Pakistani mobile operator Zong announced plans to invest between $300 million and $400 million, to expand the coverage of 3G and LTE services across the country.

By the end of 2016, Zong expects its 3G network to cover approximately 100% of the Asian nation, while LTE services are set to reach nearly 60% of the country’s population.

Zong, which is controlled by China Mobile, currently operates 2,700 LTE sites in Pakistan, offering LTE services using spectrum in the 1.8 GHz band.

ABOUT AUTHOR

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.