To this extent, both the boards of RCom and its subsidiary RINFRATEL have cleared the proposal. Further, RCom has opened talks with local and overseas companies for a cash and stock transaction in pursuit of their objective – to bring in strategic and financial investors to the project.
Speculation is rife in industry circles that RCom has initiated talks with a leading tele-infra player GTL, but no confirmation is forthcoming from either sides. Currently, Reliance Infratel has 54,000 towers with plans to ramp up by another 10,000 by year-end, while GTL has about 32,000 towers, which makes for a global size.
ADAG Chairman Anil Ambani said: “Our transformational initiative of creating the world’s largest independent telecom infrastructure company, will facilitate efforts of new telecom players to achieve the most extensive and fastest nationwide rollout, in the most cost-effective manner. ….looking forward to an era of healthy co-operation and collaboration with existing and new players, especially recent winners of 3G and BWA spectrum.”
The boards noted recent developments in the Indian telecom sector, including substantial future demand for telecom infrastructure across the country from 14 players in 2G, and winners in the recent auction for 3G ( 9 players) and BWA (Broadband Wireless Access - 8 players).
As such, they (the boards) felt that enhanced independence and neutrality of the telecom infrastructure company will act as a significant catalyst for attracting these new tenants. “The interests of RCom as INFRATEL’s continuing largest tenant will be protected through appropriate contractual arrangements.” The proposal will lead to substantial unlocking of value for RCOM’s over 2 million shareholders, it maintained.