Reliance buys UK WiMax firm
25-04-2008
Reliance Communications has acquired UK-based WiMax operator eWave World for an undisclosed amount. The acquisition
was made through RCom?s subsidiary for global operations, Reliance Globalcom . It will be funded through internal accruals,
Reliance Globalcom CEO Punit Garg said
"We have taken a gigantic step in the broadband direction and looked at 4G WiMAX to be the next step in our global aspirations" he said.
Reliance Globalcom will invest about $500 million over the next few years to build and acquire WiMAX networks in emerging markets in different continents. The networks would be capable of offering fully mobile voice and data services with download speeds as high as 2MB.
eWave holds WiMAX licences and has received spectrum to commence services in several countries. The acquisition will help RCom gain access to airwaves and licences to operate the WiMAX services in several countries, including China, Mr Garg said.
"4G WiMAX networks in 50 countries would enable us to offer services to over 75% of global population in combination with Reliance Globalcom's 1,15,000 km IP (internet protocol) enabled network spread across six continents".
The commercial launch of the WiMAX services would begin by this year-end and by 2009-end, the company aims to roll out its network in close to 20 countries.
This is the second overseas investment by Reliance ADA Group in WiMAX technology. Reliance Technology Ventures (RTVL), a subsidiary of RCom, picked up a stake in French WiMAX chip maker Sequans late last year.
eWave World also has a JV in China, under which the company co-owns and operates 36,000 km of optic fibre across top 30 cities in China. This JV firm has applied for a nationwide broadband licence in China
"We have taken a gigantic step in the broadband direction and looked at 4G WiMAX to be the next step in our global aspirations" he said.
Reliance Globalcom will invest about $500 million over the next few years to build and acquire WiMAX networks in emerging markets in different continents. The networks would be capable of offering fully mobile voice and data services with download speeds as high as 2MB.
eWave holds WiMAX licences and has received spectrum to commence services in several countries. The acquisition will help RCom gain access to airwaves and licences to operate the WiMAX services in several countries, including China, Mr Garg said.
"4G WiMAX networks in 50 countries would enable us to offer services to over 75% of global population in combination with Reliance Globalcom's 1,15,000 km IP (internet protocol) enabled network spread across six continents".
The commercial launch of the WiMAX services would begin by this year-end and by 2009-end, the company aims to roll out its network in close to 20 countries.
This is the second overseas investment by Reliance ADA Group in WiMAX technology. Reliance Technology Ventures (RTVL), a subsidiary of RCom, picked up a stake in French WiMAX chip maker Sequans late last year.
eWave World also has a JV in China, under which the company co-owns and operates 36,000 km of optic fibre across top 30 cities in China. This JV firm has applied for a nationwide broadband licence in China
