At the order of the Bombay HC, shareholders of RCom approved the move to demerge of Optic Fiber Division of RCom to Reliance Infratel.

A company statement said that the demrger will help the stakeholders on account of reduced set-up and operating costs resulting in cost efficiency coupled with a greater financial flexibility. The move will also allow each of the companies to focus on its core business.

“Promote high valued standalone business by conversion of cost-centric assets to revenue-centric ones by sharing of the Infrastructure of Reliance Infratel Limited with other wireless service providers operating in the same field,” said a company statement.