RCom gets TDSAT relief, can go ahead with spectrum deal sans bank guarantee

Reliance Communications (RCom) said the Telecom Disputes Settlement Appellate Tribunal (TDSAT) had allowed it to complete its spectrum sale deal without having to pay a bank guarantee of Rs 29 billion. The guarantee had been demanded by the department of telecommunications (DoT).

The Anil Ambani-owned company said it would get Rs 9.75 billion from sale of spectrum, of which it was to give Rs5.5 billion to Ericsson. Reliance Infratel minority investors would be paid Rs 2.3 billion from the proceeds, the company said in a filing to the BSE exchange.

Ericsson, the Swedish telecom gear maker, filed a petition in the Supreme Court after RCom failed to pay it about Rs 5.5 billion to settle a dispute over dues. RCom had to pay this to Ericsson by September 30; two days before this, it asked for 60 more days to pay. That matter is slated to be heard this Thursday; Ericsson is not agreebale to the extension and has filed a contempt of court petition.

RCom said TDSAT had, beside staying the DoT demand, directed the latter to expeditiously grant approval for trading of the spectrum.

Last year, the company signed a pact with Reliance Jio, part of another corporate group, for sale of wireless spectrum, tower, fibre and media convergence node assets. The proceeds were to be used to pare debt.

Reliance Communications (RCOM)