Reliance Communications seeks DoT to tweak norms, may sell equity to Jio

With an aim to ease financial pressures including debt reduction, Anil Ambani-driven Reliance Communications (RCom) has asked the telecom department (DoT) to tweak guidelines for cross-holding of spectrum, Telecom Tiger Monday reported.

In a letter dated July 6, the Mumbai-based company sought DoT to do away with the 10% cross holding norm so that it can sell equity to existing telecom service providers particularly Mukesh Ambani’s Reliance Jio.

The government introduced cross-holding clause to facilitate a healthy competition in the market.

RCom is eyeing to further earn from allowing a larger chunk of airwaves to new entrant Jio, and has a debt of more than Rs 42,000 crore.

In April 2016, the department allowed radiowaves sharing RCom and Jio nine circles including Mumbai, Assam, Haryana and UP East.

Both companies also entered into spectrum trading deal worth Rs 4,500 crore in January 2017 in 13 circles.