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Debt-laden Reliance Communications (RCom) has received Rs 2,000 crore following the closure of its sales of Media Convergence Nodes (MCNs) and related infrastructure assets to Reliance Jio Infocomm (RJio).
Following the sales, 248 MCNs covering more than 5 million sq ft, used for hosting the telecom infrastructure, have been transferred to RJio, the company said in a statement.
Earlier, on August 13, sources close to the development had told BusinessLine that RCom had received the first tranche of about ₹800 crore from the sales of its assets. This was mainly for the towers, optical fibre cable network, certain spectrum and Media Convergence Nodes.
On August 17, the Supreme Court had vacated an earlier Telecom Disputes Settlement and Appellate Tribunal (TDSAT) judgement passed against RCom on differential spectrum pricing on August 3, 2018. This move was expected to speed-up RJio's asset monetisation plans.
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RCom and its subsidiary, Reliance Telecom, in an attempt to ward off the threat of licence and spectrum cancellation, had also re-instated bank guarantees of ₹774 crore with the Department of Telecommunications (DoT). The replenishment of the bank guarantees comes ahead of the September 10 deadline granted by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
On December 28, the Mukesh Ambani-led Reliance Jio Infocomm (RJio) had emerged as the white knight to acquire the wireless assets of RCom, controlled by his younger sibling, Anil. RJio, a wholly-owned subsidiary of RIL, emerged as the successful bidder in a two-stage bidding process.
RJio had announced plans to acquire RCom’s more than 43,000 towers, 1.78-lakh route km of optical fibre cable network, 122.4 MHz of spectrum in the 800, 900, 1800 and 2100 MHz bands and 248 MCNs. These assets are expected to contribute significantly to the large-scale roll-out of RJio’s wireless, fibre-to-home and enterprise services, the Mukesh Ambani company said in a statement.
Read also: Mukesh’s Jio leads race to buy Anil’s RCom’s assets
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