Reliance Industries acquires Infotel to foray in Telecom Business

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The auction process was always slated to peak out in a day or two with the soaring bids. So, it wasn’t a big surprise to see end of BWA Auction. What was surprising though is the news that pan-India winner of the BWA spectrum, Infotel Broadband, has become an acquisition target.

Yes, it’s none other than Reliance Industries which buys out 95% stake in Infotel Broadband for Rs.4800 crore. In my very previous post on the update on the BWA auction, I had expressed my surprise as to how Infotel has emerged as an exclusive all-India winner of BWA spectrum in all the 22 circles.

 

However, let me take this opportunity to say that, now it comes as a ‘No Surprise’ to me that Infotel has gained access as a sole bidder with pan-India presence with the strong backing of Reliance Industries. In fact, as per a speculation in a report, Reliance itself could have funded the costs related to broadband spectrum fees for bids put in by Infotel.

RIL was in constant news and rumours, among the media circles, since the last fortnight about its foray into newer businesses after entering into an environment of harmony with the Anil Ambani-led ADAG. Finally, India’s biggest private sector company seems to have zeroed on to re-enter the world of telecom.

Now, take this! Mukesh Ambani has said:

“We see this as the next wave of value creation opportunity in the wireless broadband space. We believe this will pole-vault India’s economy into the digital world at an accelerated pace while creating next generation tools that will enhance productivity and create world-class consumer experiences.”

 

Is this pointing out towards more intense competition in the depressed sector of telecom? Or, In fact, does it indicate that the consolidation in the sector is likely to speed-up as stronger players with deep pockets are keen to make a beeline for the upcoming next generation technology?

It is still to be determined as to how deep is Reliance planning to enter into the telecom industry. However, sources say that the company could use the spectrum to offer the premium 4G services going forward.

Finally, are you ready for the next round of Telecom battle between Ambani vs. Ambani?

  1. […] owned Reliance JIO Infocomm got the Broadband and Wireless Access (BWA) spectrum license (through Infotel acquisition) for launching mobile internet services in the country couple of years back but the company has […]

  2. business news says

    Viral,

    Thanks, I completely agree with you. Hope the competition in the broadband will give some relief to customer in terms of tariff.

  3. Viral says

    Hello ‘Khalid’ & ‘Busines news’,

    In deed, now we have 2 fiercely competitive Reliance groups fighting for in the same industry for the cause of their individual shareholders. Let’s see what is the final outcome.

    With scouting with pan-India presence, definitely, Mukesh Ambani has some grand plans in the broadband space. Time will allow more information.

  4. business news says

    Well its good development that RIL acquired Infotel. I hope its a good business strategy.

  5. Altaf Rahman says

    RCom is conspecious by its absence in BWA auction. It did not get a single sector out of 23 in the auctions. Where as Infotel has won 22 out of 23. So at least at the moment, there is no compitition between brothers.

  6. khalid says

    Anil’s R.Com is doing well and now a competitor for him from family itself, lets see how Mukesh succed in this field.

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