Reliance Jio, which is currently the fastest growing telecommunications network in India, is about to buy all the wireless assets of Reliance Communications Ltd. that is laden under a debt of a huge amount of money. Anil Ambani signed the contract this week on Tuesday, which states that the assets will be handed over to the Reliance Industries Ltd. that will be beneficial to both the companies. The same has been confirmed by the authority of both the companies last Thursday.
The assets include a long list of items like towers, all spectrums, fiber optic and other miscellaneous telecom infrastructure products. The availability of these items is completely dependent on the government and various regulatory approvals.
This sale will ensure the telecom company is back under the umbrella of the Reliance Industries, which was previously split in the year 2005. When the association of these two brothers discontinued, Anil Ambani took over the power and telecommunications whereas the elder brother Mukesh Ambani kept the cash cow oil and gas businesses.
When Mukesh Ambani reentered the arena of telecom with Jio in September 2016, it shook the entire nation with its depleted data price and free of cost voice calls.
Apart from the deal offered by the elder Ambani, Anil Ambani also received various offers regarding the sale of the wireless assets, which will effectively cut the debt by a huge percentage.
RCOM and RJIL will close the deal between January and March of 2018. These assets will add to the large-scale roll out of the wireless and fiber to the homes. The widespread assets will benefit the telecommunication company that has a customer base of 140 million. This will also enable Reliance Jio India Limited to have an access to the four bands of the spectrum along with the 43,000 towers and the widespread fiber-optic network.