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Reliance forms new subsidiary

Finance , November 15, 2006

Reliance Communications plans to hive off its mobile telephony towers business into a separate subsidiary, to be named Reliance Towers Limited. It will then offload a significant stake in the new entity to the US based American Towers, an independent owner and operator of wireless and communication sites. This move will help Reliance to convert a recurring cost on the company's balance sheet to a source of revenue. At present, Reliance has 15,000 GSM and CDMA cell sites; it plans to set up another 10,000 in the next 12-14 months.

 
 

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