Reliance Communications

History

Reliance Communications Ltd. was established in 2002. The same year, it launched CDMA services nationwide. In 2008, Reliance Communications launched GSM services. In the 2010 spectrum auction, Reliance Communications paid ₹ 58,642.9 million for 3G spectrum in 13 circles Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam, North East and Jammu & Kashmir.

On 25 May 2012, RCom announced a price reduction of 51% on its 3G services. In 2011, Reliance provided up to 28 Mbit/s data rate in India with its MIMO technology. On 31 January 2013, RCom announced its partnership with Lenovo to market co-branded smartphones in India. The smartphones were said to use the Android operating system and have dual-core processors. In 2015, it launched CDMA in REV. B technology in non 3G circles.

In April 2016, RCom informed its CDMA subscribers that it would be shutting down its CDMA operations, and that all CDMA subscribers would be migrated to GSM and LTE networks. The company announced that the migration had been completed in September 2016.

Acquisition of MTS India

On 14 January 2016, RCom announced that it had acquired Sistema Shyam TeleServices Limited (SSTL), doing business as MTS India, in an all stock deal, in which SSTL received a 10% stake in RCom, after paying off its existing debt. RCom would assume the liability for installments that SSTL had to pay the government from purchasing spectrum. The liability amounted ₹392 crore annually for 10 years. As a result of the deal, Reliance acquired MTS India's subscribers, as well as SSTL's spectrum in the 850 MHz band.

The merger deal was approved by the Competition Commission of India (CCI) in February 2016. SEBI cleared the deal by March, and SSTL shareholders approved the deal on 18 March. By mid-August, the deal was approved by tax authorities and the shareholders and creditors of RCom and SSTL. The merger was approved by the Rajasthan High Court on 30 September 2016, and the Bombay High Court on 7 October 2016. The final approval, from the Department of Telecommunications, is expected by the end of March 2017.

Merger of wireless business with Aircel

On 14 September 2016, RCom and Maxis Communications (owners of Aircel) announced that they would merge their mobile network operations. The deal is the largest consolidation in Indian telecom history, and will create the fourth largest mobile network operator in the country by subscribers and by revenue. RCom and Maxis will each hold 50% stake in the merged entity, with equal representation on the board of directors and all committees. RCom will continue to operate in the enterprise segment and data centre businesses as a standalone entity.

RCOM announced on 15 March 2017 that it had received approval for the deal from SEBI, BSE and NSE. The deal was approved by the CCI on 20 March 2017. The merger is expected to be completed by mid-2017.

Network coverage

Reliance Communications operates in all 22 telecom circles of India, and offers services on GSM and CDMA platforms. Mobile services are available in the following telecom circles:

Ultraband

RCom launched its Ultraband service offering internet speeds of up to 1 Gbps in select locations in Mumbai and Navi Mumbai in April 2016.

Subsidiaries

Reliance Telecom Limited (RTL) operates in Madhya Pradesh, West Bengal, Himachal Pradesh, Odisha, Bihar, Assam and the northeast of India. It first offered GSM services in January 2003. Reliance Tech Services is the IT services wing of Reliance ADAG. It provides IT consultancy, business process outsourcing and software development for Reliance Communications and other ADA group companies. Reliance Globalcom owns the Fiber-Optic Link Around the Globe undersea cable system and RIDC provides Internet data centre (IDC) services located in Mumbai, Bangalore, Hyderabad and Chennai. Reliance Communications also acquired FLAG Telecom, Yipes ethernet service, Digicable and Vanco.

Reliance Digital TV Ltd

Reliance Digital TV Ltd is a direct to home (DTH) television operator offering services under the brand name Reliance Digital TV.

Reliance Infratel Ltd.

Reliance Infratel Ltd. (RITL) handles RCom's mobile towers asset and related infrastructure. RCom owns a 96% stake in the company and the rest is held by several minority investors - Quantum (M), NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers, Investment Partners B (Mauritius). Investment Partners B had invested $287 million in 2007.

RCom announced that it had signed a binding pact with Brookfield Infrastructure Group to sell a 51% stake in Reliance Infratel for ₹11,000 crore (US$1.6 billion). RCom will utilize the entire amount earned from the deal to reduce its existing debt. Following the deal, Brookefield will hold a 51% state in Reliance Infratel, RCom will retain a 49% stake and the minority partners will exit.

Global Cloud Xchange

Global Cloud Xchange (GCX) offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies across the world’s largest private undersea cable system spanning more than 67,000 route kilometres (“rkm”), integrated with Reliance Communications’ 200,000 rkm of domestic fiber-optic backbone.

Reliance Global Call

Reliance Global Call offers international service in India, US, Canada, Australia, UK, Singapore, Hong Kong, New Zealand, Singapore, France, Belgium, Austria, Spain, Ireland and Netherlands.