Friday, April 25, 2008

Reliance Communication acquires WiMAX operator eWave World

Anil Ambani-controlled Reliance Communications acquired a controlling stake in UK-based eWave World, a telco focused on the rapidly developing market for wireless telephony services using the WiMAX technology standard.

The acquisition was done through Reliance Infocom BV, a division of Reliance Globalcom and wholly owned subsidiary of Reliance Communications.

Over, the next 2-3 years, Reliance Globalcom, through the acquired company eWave World, would invest around USD 500 million (Rs 20 billion) to build and acquire WiMAX networks in emerging markets in Asia, Europe, Latin America and Africa.

Recently, eWave World had entered into a joint venture in China to invest in nationwide broadband operations. The company holds WiMAX licenses and has received spectrum to commence WiMAX services in several countries.

``The 4G WiMAX network in 50 countries would enable us to offer the most diverse and unmatched suite of services to over 75% of global population in combination with Reliance Globalcom`s 115,000 km fully IP enabled optic network spread across 6 continents``, said Punit Garg, CEO, Reliance Globalcom.

Last Year, Reliance Globalcom had acquired US-based ethernet service provider Yipes Holdings for USD 300 million (Rs 12 billion).

Reliance Globalcom is investing USD 200 million (Rs 8 billion) to more than double the metro coverage in the U.S. to over 35 top metros.

Shares of Reliance Communications declined Rs 15.85, or 2.89%, to settle at Rs 532.8. The total volume of shares traded was 968,216 at the BSE. (Thursday)

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