RIL CMD Mukesh Ambani started arbitration process against his younger brother Anil's company Reliance Communications (RCOM). Thus fight between two brothers is further increased on MTN issue. RCOM, an Anil Dhirubhai Ambani Group (ADAG) company is interested to form a joint company with South African telecom major MTN. The arbitration by RIL CMD Mukesh Ambani will adversely affect the deal.

It is pertinent to mention that RCOM and MTN are in touch with each other for joint business. MTN wants to acquire Anil Ambani's shareholding in RCOM and ADAG will get shares in MTN. Samajwadi Party leader Amar Singh is active in resolving dispute between two brothers.

RIL has nominated former Supreme Court Judge Jeevan Reddy as its arbitrator. It has sent the notice to RCOM on Thursday. ADAG, on the other hand, questioned the legality and factuality of notice as the RIL has not taken any decision to sell Anil Ambani's holding in RCOM to anyone.  
A merger between RCOM and the South African telco will create a global telecom giant with 120 million subscribers in 23 countries. MTN has asked RCOM to sort out all legal issues with RIL to conclude the talks with in stipulated period.

MTN was also close to deal with Airtel in early this year but failed on the issue of corporate structure of the combined entity. MTN is reported to be in touch with Bharti Airtel again.