Indian operator Reliance Communications (RCom) has reviewed the ongoing strategic transformation programme, and considered alternate plans for debt reduction. The company’s board of directors has decided that RCom will evaluate an alternate plan for its mobile business, through optimization of its spectrum portfolio and adoption of a 4G focused mobile strategy, according Telecompaper. RCom already has access to 4G mobile network through spectrum sharing and ICR agreements with Reliance Jio. The combination of the mobile business of Sistema Shyam Teleservices (SSTL) into RCom is also expected to be completed this month. RCom expects the addition of SSTL's spectrum holdings in the 800-850 MHz band to strengthen its spectrum portfolio by 30 MHz, and extend its spectrum validity period in 8 circles in the country until 2033.
RCom reports it also has spectrum across 800/900/1800/2100 MHz spectrum bands aggregating 200 MHz, valued at over INR 190 billion for the balance of validity period, based on last auction pricing. The company plans to evaluate opportunities for monetization of the same through trading and sharing arrangements.
RCom has also announced that the merger of its mobile business with Aircel has lapsed with mutual consent.
According to RCom, its B2B Businesses generate equal revenues from domestic and overseas operations. As part of the ongoing transformation and in order to enhance value for all stakeholders, the RCom board reaffirmed the focus on these stable, capital light B2B businesses which have sustained and predictable revenues and profits, with growth potential.
RCom plans to continue to implement its plans for monetization of its tower and fiber assets. RCom expects monetization of tower and fiber assets and real estate, and optimization of spectrum portfolio to generate proceeds of over INR 250 billion for debt reduction.
RCom also says it is in advanced talks with banks for balance debt post deleveraging. RCom continues to be under SDR standstill period until December 2018.