Reliance Communications (RCOM) has signed a deal with Veecon Media and Television Limited, for sale of its subsidiary Reliance BIG TV Limited (RBTV).  This move is in line with RCOM’s decision to operate as a mobile virtual network operator (MVNO) that offers 4G services once it sheds its 2G and 3G voice business.

Veecon will acquire the entire shareholding of RBTV with business on “as-is where-is” basis, along with all existing trade liabilities and contingent liabilities. RCOM said that the existing direct-to-home (DTH) license of BIG TV shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by Veecon.

The deal will ensure that the 1.2 million customers of RBTV shall continue to enjoy uninterrupted services and also the continuity of employment for approximately 500 employees of RBTV. The successful completion of the transaction, however, is subject to the requisite approvals from licensors, regulatory authorities and lenders of RCOM.

RCOM is currently undergoing a strategic debt restructuring program. Under the strategic debt restructuring program, the operator has presented a fresh “zero write-off” plan to its lenders, under which banks could convert some of its debt and take a 51 per cent stake in the telecom operator.