Reliance Communications (RCOM) is in discussion with Russia-based conglomerate Sistema for a possible merger of their Indian telecom business through a stock swap. The deal will, reportedly, involve RCOM taking over Sistema Shyam TeleServices Limited?s (SSTL) business but without its liabilities.
While SSTL offers telecom services under the MTS brand using CDMA technology in nine service areas in the contry, RCOM is a pan-Indian operator offering both CDMA as well as GSM and 3G services. Industry analysts believe that consolidation in the industry will soften competition and help companies regain pricing power in the highly competitive Indian telecom market.
