HC approves scheme of arrangement between Reliance Comm, RTIL

Mumbai, Mar 19 (UNI) Reliance Communications Ltd today announced that the Bombay High Court has approved a scheme of arrangement between the company, Reliance Telecom Ltd (RTL) and Reliance Telecom Infrastructure Ltd (RTIL), a subsidiary of the company, by way of demerger of the passive infrastructure, comprising the wireless towers (CDMA and GSM) and related infrastructure of the company and RTL to RTIL.

The demerger of passive infrastructure would benefit the respective companies and the stakeholders on account of reduced set-up and operating costs, resulting in cost-efficiency coupled with a greater financial flexibility. Segregation of the business of providing telecommunication services and the business of providing the passive infrastructure facilities, thereby enabling the companies to concentrate on its core business activities.

Improved quality of services to its customers by establishing highest service standards through operational agreements and promote high valued stand alone business by conversion of cost-centric assets to revenue-centric ones by sharing of the passive infrastructure of the resulting company with other wireless service providers operating in the same field, the release added.

UNI