Reliance Communications (RCOM) is reportedly holding discussions with Sistema Shyam TeleServices Limited (SSTL) for merging their operations. It has been reported that the discussions pertain to a possible takeover of SSTL’s assets and not liabilities, with the assets being valued at about $500 million (Rs 32 billion). Meanwhile Russia-based Sistema JSFC, the parent company of SSTL, recently stated that it held talks with RCOM for business expansion but no deal has been finalised.

SSTL under the brand name MTS brand uses CDMA technology to offer services in nine circles to nearly nine million subscribers. Sistema JSFC holds nearly 57 per cent in SSTL, while the Russian government holds 17 per cent stake and Shyam Group holds 24 per cent stake in the company.