Mukesh Ambani's Reliance Jio buying brother Anil's RCom wireless assets

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Reliance Jio will acquire towers, optic fiber cable network or OFC, 4G Spectrum from RCom. "These assets are strategic in nature and are expected to contribute significantly to the large scale roll-out of wireless and Fiber to Home and Enterprise services by Reliance Jio", the statement added.

The transaction is expected to close in a phased manner in January-March 2018. Jio will also pay the spectrum installments due to the government. While the companies are yet to announce the deal size, it is estimated to be worth around Rs 23,000 crore, a massive relief for Anil's debt-ridden Reliance Communications (RCom) that is saddled with loans of almost Rs 45,000 crore and was facing possible bankruptcy proceedings.

RIL chairman Mukesh Ambani-led Reliance Jio emerged as the highest bidder in a transparent process conducted under the supervision of a high-powered bid evaluation committee, comprising experts from banking, telecom and law, RCom said in a statement.

After the transactions, RCom is expected to gain from the sale, the proceeds of which will be used for the company's debt reduction. The company is already undergoing a "robust" transformation to a business-business services company, Anil Ambani had said.

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Other deductions have been repealed as well, such as alimony , tax-preparation fees and casualty losses. At present, there is no limit on the deduction, but that will change under the new tax laws.

India Ratings and Research says the industry is being redrawn from a large number of operators to an oligopoly as sponsors of smaller, unprofitable telcos exit the field, unable to sustain losses. The other incumbent players such as Vodafone, Idea Cellular and Bharti Airtel may have kept away from bidding aggressively because they also are dealing with competition from Reliance Jio.

Earlier, Reliance Communications said it will be receiving funds from the development of real estate assets and diluting stake in B2B telecom business.

The two telecom companies later agreed to share telecom infrastructure, which clearly benefited Reliance Jio Infocomm. While Bharti Airtel Ltd-the nation's biggest mobile-phone operator-has acquired the Indian unit of Norwegian firm Telenor and the consumer telecom business of Tata Teleservices Ltd, Idea Cellular Ltd and the local arm of Vodafone Group Plc have chose to merge.