Telecom network operator Reliance Communications has initiated talks with Maxis to buy relatively smaller rival Aircel in order to combine their wireless business.
If Reliance Communications could add Aircel to its network, this will be the second acquisition in the last six months for Anil Ambani. Reliance Communications earlier acquired MTS India from Russian business group Sistema and its Indian promoters by offering 10 percent stake.
“A pact for 90-day exclusive talks has been initiated with Aircel’s majority owner, Malaysia’s Maxis Communications, and Sindya Securities and Investments for the potential merger,” said RCOM in a statement.
The statement issued on Tuesday said that potential combination will exclude towers and optical fiber infrastructure of Reliance Communications. Reliance Communications is in the process of selling its towers and optical fiber infrastructure. Reliance Communications is selling towers and optic fiber infrastructure in order to reduce debt. The telecom network operator on Monday sold flats in New Mumbai for Rs 330 crore.
Aircel has limited presence in states:
| State | Towns | Villages | Wireless users |
| Andhra Pradesh | 177 | 707 | 2773130 |
| Assam | 125 | 12519 | 4676910 |
| Bihar | 229 | 11149 | 6767721 |
| Gujarat | 77 | 383 | 17063 |
| Haryana | 12 | 107 | 3092 |
| Himachal Pradesh | 346 | 5599 | 1038137 |
| Jammu and Kashmir | 77 | 5919 | 2543768 |
| Karnataka | 230 | 2517 | 2904715 |
| Kerala | 8 | 0 | 130162 |
| Maharashtra | 140 | 2156 | 2354961 |
| Madhya Pradesh | 34 | 0 | 20694 |
| North East | 107 | 3293 | 2969360 |
| Orissa | 127 | 16321 | 4376787 |
| Punjab | 31 | 398 | 1014605 |
| Rajasthan | 70 | 1025 | 6311196 |
| Tamil Nadu | 3982 | 14305 | 21155024 |
| UP East | 305 | 11603 | 6690894 |
| UP West | 73 | 769 | 472183 |
| West Bengal | 210 | 16077 | 5148139 |
| Delhi | 0 | 0 | 5892684 |
| Mumbai | 0 | 0 | 2777718 |
| Kolkata | 0 | 0 | 3956840 |
If the deal happens, Reliance Communications will have over 150 million customers in India and it will hold close to 20 percent of the total spectrum – the highest in country — in virtually every band currently available to private telecom players.
As per the telecom deal being negotiated, Reliance Communications shareholders will receive free listed shares in the combined wireless entity. This apart, a debt of Rs 10,000 crore will be transferred to the separate listed combined entity, IANS reported.
According to TRAI data for September 2015, Reliance Communications has a mobile market share of 11.08 percent, MTS India 0.84 percent and Aircel 8.43 percent.
Bharti Airtel with 23.06 percent, Vodafone India with 18.88 percent and Idea Cellular with 16.71 percent are the top three telecom network operators.
Reliance Communications has 110.38 million subscribers. The number of Aircel subscriber is 83.99 million.
Aircel does not have wireless presence in Kolkata, Delhi, Mumbai and Chennai metros. Aircel has 3G spectrum in 13 circles, BWA spectrum for 4G LTE network in 8 circles.
Baburajan K
editor@telecomlead.com
