Tower-sharing deal between RIL, RCom ‘inevitable’, says CLSA
“Reliance Industries is the only pan-India 4G spectrum owner. Service rollout is reported to be in 2013 and its best option remains to lease towers from Reliance Infratel,” said CLSA which has a “sell” rating on the company's stock.
Service rollout is reported to be in 2013 and its best option remains to lease towers from Reliance Infratel, the brokerage said, adding that incremental tenancies will improve RCom’s financial health and accretion to FY14 ebitda is likely to be significant at 10-15%.
RCom has a debt of about R35, 000 crore, accounting for 10% of the cumulative debt of the telecom sector.
RCom has been trying to reduce its debt load for some time now. In September, the company tried to reassure investors and said it will look at selling some stake in its telecom tower business in 2013 to pare some of its mounting debt.
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