The Board of Directors of Reliance Communication Ltd on January 31, 2009, approved a Scheme for consolidation of Optic Fiber Division of the Company to Reliance Infratel Ltd, a subsidiary of the Company.
Reliance Infratel owns, operators, and develops telecom infrastructure, primarily consisting of wireless communication sites and towers. Reliance Infratel currently owns all of the towers used by RCOM’s CDMA and GSM wireless networks and is developing additional towers to meet the needs of RCOM and other customers.
The Consolidation of Infrastructure Business will enhance stakeholders value and provide overall flexibility with multiple benefits such as:
Passive telecom infrastructure assets consolidated under one entity.
Single interface for the customer, leading to better services.
Common marketing organisation and customers for infrastructure services.
Consolidation will lead to synergies and cost efficiencies in term of lower operating costs,
No additional equity shares are to be issued and no change is proposed in the capital structure of the Company in terms of said Scheme.