Left Menu
Development News Edition

RCom, Jio approach DoT seeking its stand on proposed spectrum deal

Devdiscourse News Desk | New Delhi | Updated: 04-01-2019 22:08 IST | Created: 04-01-2019 21:50 IST
RCom, Jio approach DoT seeking its stand on proposed spectrum deal
The DoT has put the spectrum trading between the two companies on hold after Reliance Jio refused to bear the burden on any past dues that RCom owes to the government. (Image Credit: Twitter)

Ambani brothers led telecom firms are learnt to have approached jointly telecom ministry seeking clarification on the stand of the government over their spectrum trading deal, industry sources said Friday. "Reliance Jio and Reliance Communications have jointly written to the Department of Telecom seeking clarification on its stand over spectrum trading deal between the two companies," an industry source told PTI. Another source said Mukesh Ambani-led Reliance Jio has reiterated to DoT that it is interested in going ahead with the spectrum trade with his Anil Ambani's firm Reliance Communications.

The DoT has put the spectrum trading between the two companies on hold after Reliance Jio refused to bear the burden on any past dues that RCom owes to the government. In a letter to the DoT on Thursday, Jio cited petition of RCom before telecom tribunal TDSAT showing that the petitioners, who are the sellers, have retained the liabilities upon themselves. RCom too took the liability on itself with respect to the clearing of dues to the department. No immediate comments were received from the Department of Telecom, Reliance Jio and Reliance Communications in this regard.

RCom has offered the DoT corporate guarantee of Rs 1,400 crore issued by Reliance Realty Limited (RRL) and an undertaking from RRL not to alienate property for a value of Rs 1,400 crore for approving the sale of its spectrum to Reliance Jio. Last year, RCom signed a pact with Reliance Jio for the sale of wireless spectrum, tower, fibre and media convergence nodes assets - the proceeds of which were to be used to pare debt.

From that deal, RCom so far announced the completion of the sale of optical fibre assets worth Rs 3,000 crore and sale of its media convergence nodes worth Rs 2,000 crore to Mukesh Ambani-led Reliance Jio Infocomm. RCom expects to get Rs 975 crore from sale of the spectrum which it has promised to pay due of Rs 550 crore to Ericsson and Rs 230 crore to settle dues of minority stakeholder Reliance Infratel.

Meanwhile, NationalCompany Law Appellate Tribunal (NCLAT) has put on hold insolvency proceedings against RCom after promise made by the company. NCLAT has adjourned the hearing to January 22 in the matter of Ericsson petition and RITL minority investors' related settlement petition. Total debt on RCom is estimated to be around Rs 46,000 crore.


TRENDING

OPINION / BLOG / INTERVIEW

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Rwanda’s COVID-19 response commendable but health information system needs improvement

Rwanda is consistently working to improve its health information system from many years. However, it is primarily dependent on the collection and reporting of health data on a monthly basis. Besides, evaluation studies on Rwandas HIS publis...

Videos

Latest News

Thousands protest COVID-19 restrictions in central London

Thousands gathered Saturday at Londons Trafalgar Square to protest lockdowns and social distancing rules imposed to slow the spread of COVID-19. Londons Metropolitan Police has warned demonstrators to follow social-distancing rules. Police ...

For how long will India be kept out of decision-making structures of UN, PM asks at UNGA session

Prime Minister Narendra Modi on Saturday questioned for how long will India, the worlds largest democracy and home to 1.3 billion people, be kept out of the decision-making structures of the United Nations, asserting that reform in the resp...

Record surge in COVID-19 cases in Slovakia

Slovakia is facing a record surge of coronavirus infections with the number of new confirmed COVID-19 cases surpassing 500 in one day for the first time. The Slovak Health Ministry says the day-on-day increase was 552 on Friday.Slovakia sti...

Motor racing-Hamilton on pole with Schumacher's record in sight

Formula One championship leader Lewis Hamilton roared back from qualifying drama at the Russian Grand Prix on Saturday to put his Mercedes on pole position for what could be a record-equalling 91st victory.Red Bulls Max Verstappen seized se...

Give Feedback