Mumbai, Nov 2 (IANS): Industrialist Anil Ambani-led Reliance Communications on Monday announced a definitive agreement for the merger of Sistema Shyam Teleservices into its fold in a unique stock-cum-spectrum fee deal, triggering a major consolidation in India's telecom space.

"As result of the demerger, Sistema Shyam Teleservices will acquire and hold a 10 percent stake in Reliance Communications. In addition, Reliance Communications will assume the liability to pay the Department of Telecom installments for Sistema Shyam's spectrum, amounting to Rs.392 crore per annum for the next 10 years," the company said in a statement.

The deal -- which was approved by the respective boards -- also includes the acquisition of the "MTS" brand.

Sistema Shyam Teleservices is an arm of Sistema -- a publicly-traded, diversified holding company in Russia and the region that invests in companies across the globe in areas such as telecommunications, high technology, radars and aerospace, banking, retail, mass-media, tourism and healthcare services.