Reliance Communications (RCom), the country’s second-largest wireless operator, is close to acquiring a Europe-based specialty WiMax operator.
The $300-400 m deal could be finalised next fiscal
MUMBAI: Reliance Communications (RCom), the country’s second-largest wireless operator, is close to acquiring a Europe-based specialty WiMax operator.
A source said that RCom is at an advanced stage of discussions and the deal would be sealed next
fiscal.
It would be in the range of $300-400 million and would be done through a global subsidiary, which will come under Reliance Globalcom.
An RCom spokesperson declined comment.
The target firm is currently funded by venture capital funds and has licences and spectrum for WiMax operations in 20 countries across eastern Europe, Africa and Latin America.
This would be RCom’s first overseas foray in the WiMax arena.
The buyout would give it a fibre optic network of 50,000 km in China, connecting the top 40 cities there.
RCom’s game plan is to set up WiMax networks in 50 countries by 2011, the source added.
WiMax, or worldwide interoperability of microwave access, is a wireless broadband over a wide area and a low-cost way to provide internet connectivity in places where laying cables is difficult.
In the first stage of expansion, RCom plans to set up greenfield networks and scale up existing WiMax networks.
RCom’s WiMax network ambition entails covering 40% of the global population by 2012. It has already set up networks in 18 Indian cities and is expected to bet big on this space, once the 4G policy is announced.
It has already been discussing WiMax tenders with global equipment manufacturers like Alcatel Lucent, Huawei and ZTE on a per-subscriber usage basis.
RCom plans to offer hi-speed broadband services, voice, video and data suite as well as 4G services. The blueprint is to deliver a range of telecom services on the WiMax network for the corporate segment in these 50 countries.
RCom has earmarked a capex of $6 billion for the next fiscal. Out of this, around $2.5-2.75 billion has been earmarked for international projects.
The company had recently picked up a stake in a French WiMaxChip manufacturer, Sequans Communications.
r_mithun@dnaindia.net
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