New Delhi/Mumbai: India’s government has asked billionaire Anil Ambani’s Reliance Communications Ltd. to pay a fee of Rs5,384 crore ($804 million) before it shares some telecommunications airwaves, people familiar with the matter said. The stock fell.

The spectrum liberalization fee would apply to 16 service circles where airwaves weren’t sold via auctions, the people said, asking not to be identified because the information isn’t public. N. N. Kaul, a spokesman at India’s telecommunications ministry, declined to comment and a representative at Reliance Communications didn’t immediately respond to requests for comment.

Ambani is in talks with his wealthier brother’s Reliance Jio Infocomm Ltd., which is preparing to begin nationwide 4G services this year, to expand an arrangement to share wireless airwaves. The government began allowing mobile operators last year to trade some of their spectrum.

Reliance Communications fell as much as 6.6% in Mumbai trading after the Bloomberg story. The stock traded at Rs80.25, down 3.5%, at BSE close in Mumbai.

“It seems like a negative thing but we should not have an over reaction to a short-term share price move," said Abhimanyu Sofat, Mumbai-based co-founder of AdviseSure Ventures Pvt., an investment advisory firm. “Reliance Communications’ longer-term outlook will depend on how well it is able to leverage the partnerships with Reliance Jio." Bloomberg

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay High court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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