According to sources the reason is the proposed agreement with the Anil Ambani led Reliance Communications for sharing the spectrum space in the 800MHz band. Meanwhile Reliance Communications or RCom was originally developed by the Mukesh Ambani led Reliance Group, but when the brothers split, RCom went to Anil’s ADAG, but the company was not very successful and ran into huge debts.



Presently Anil Ambani is battling for survival with the Rs 46,000 crore debt burden and the new IBC Act, breathing down his neck. Furthermore if he does not retire at least some part of the debt soon, the company will go into insolvency and assets will be auctioned off to recover the dues and pay off the debtors. Reportedly from the Reliance Jio perspective, this is crucial since the 800MHz band is used by it for the 4G LTE services and Jio customers will see calls dropping as they migrate from tower to tower.

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Moreover the circles that could be affected by this include Mumbai, Gujarat, Madhya Pradesh, Himachal Pradesh, Bihar, Orissa, Assam and the Northeast. Further it is reported that without the RCom spectrum support, Reliance Jio’s own backbone infrastructure will be able to support just 50% of the spectrum bandwidth required to provide seamless service to all its customers.


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