Is Mukesh Ambani Planning To Develop A New Telecom Company?

[savramesh 37]

i heard through one of my friend's friend from mumbai reliance that mukesh ambani is confidentially planning and developing a new telecom company. the name and the progress of the company is in question.. but very few highly experienced employees from reliance communication have started jumping to mukesh's upcoming company...

does anyone knows any info related to this ?

[Dj 25]

AFAIK... there is a no competition clause in the settlement agreement between the brothers... Mukesh cant rightfully start a duplicate business...

[savramesh 37]

as per agreement he can start a duplicate business only after 5 years.. this info also i got from the same friend..he was confident about the info..

[Nirvana 4]

Right, the Non-Competition Agreement (NCA) prohibits it. THE NCA says that both the groups can enter businesses reserved for the other party, provided they are ‘incidental’ to their existing businesses. Entering the telecom sector can't be considered as "incidental" unless Mukesh comes up with a screwed mind

[Nirvana 4]

I noticed that the agreement was for 5 years only... hmmm...

[savramesh 37]

so as per agreement he can start after 5 years from the date of signing... now need to know if mukesh is interested in starting telecom business after the completion of the 5 years term...

Edited January 19, 2009 by savramesh

[Honest 836]

Obviously Mukesh can't start the same business before 5 years but his WIFE could.

Or their's any clause in the agreement that Mukesh's family members too can't start the same business ?

[situ1962 21]

He may start a new telecom company.rim was his dream project,which he had to relinquish to his brother reluctantly.now he new try to take over one of the new entrant companies.otherwise it will be very difficult to start now from the very beginning.

[KumaarShah 143]

So going by the same argument, in this case, will we see ADA starting RIL, RPL clones etc??? I think it is highly improbable that it will happen. Many people have noticed the latest bonhomie between the brothers recently, but maybe that would be for public consumption only. And being the hubby of a film actress, it is not difficult to learn the ropes of acting...

[Sadikk 301]

launching new pan india telecom is not easy as biting a cake anymore.

They have to go through license Spectrum hurdles.

Big guys like Mittal and Sarin wont allow this anymore.

I dont see any new company from RIL stable anytime in near future now.

yes i have this information though that they looking for spectrum to connect RIL alone. ( For Personal use)

[ami1 237]

RIL is definitely planning to launch a telecom service once the non compete date is over. however, their plan is based/dependent on getting quite some regulatory changes, which may be difficult in the current changed scenario - but you never know what MDA might be able to push through. They plan on using WIMAX for last mile & also allowing Mesh network among customers- which is causing nightmares amongst current telcos. They are deploying the OFC network under guise of captive /closed group usage. I have a friend who is working on the project. But its a long shot i think, even for MDA.

[dkaile 1,051]

Anyways, if and when he launches, I hope he doesnt behave like a cheat like his brother.... LOL

[Harshal 11]

I think with their mighty planned/existing fiber optic network they are more likely to get into broadband.

[Sadikk 301]

Its nothing but their own infra to connect whole group of RIL spread through out india.

They will be using their own Voip phone to make intra-group calls.

This is what i see from current scenario.

[vvinayakpai 26]

Its nothing but their own infra to connect whole group of RIL spread through out india.

They will be using their own Voip phone to make intra-group calls.

This is what i see from current scenario.

I hope Mukesh Ambani also enters the telecom sector. I am sure we consumers are going to love it!!!!

Regarding has plans to enter the telecom sector, I am sure it might be a good and a feasible option. Because when Reliance Industries Ltd forayed into retail, it has also invested in setting up optical fibre cable(ofc) throughout the length and breadth of the country, depending upon the location of their retail stores and corporate offices. This was for internal purposes, hence was not a breach of the non compete clause, which specifically mentions, the commercial competition between the brothers for a period of five years.

So now if Mukesh Ambani wants to enter the telecom sector, all he has to get is spectrum. For that, he can pick up any of the new players and strike a deal. There are many players who are stuck without capex for the rollout obligations. So it might be a distress sale. But also, considering the fact that spectrum is a scarce commodity, whoever is selling may not be in a hurry to sell their stake at a cheap rate.

If Mukesh Ambani, finally manages a hot deal, he has to arrange for the cash for purchase as well as the rollout and expansio n plans. Because at this point of time, with 3G coming round the corner, it would not make sense in investing only in 2G and neglect 3G. SO that makes a larger investment necessary by the senior Ambani to set his foot into the telecom sector. And this might cause a dent in the balance sheets of RIL which I am sure he would not like, at least in this kind of a market scenario.

SO lets keep our fingers crossed!!!!!!!! Let us hope that Mukesh also enters the telecom fray once again and lets get ready for the party, anyways!!!!!!!!!!!!!!!!!!!!!!!!!

Edited January 23, 2009 by vvinayakpai

[vvinayakpai 26]

Its nothing but their own infra to connect whole group of RIL spread through out india.

They will be using their own Voip phone to make intra-group calls.

This is what i see from current scenario.

I hope Mukesh Ambani also enters the telecom sector. I am sure we consumers are going to love it!!!!

Regarding has plans to enter the telecom sector, I am sure it might be a good and a feasible option. Because when Reliance Industries Ltd forayed into retail, it has also invested in setting up optical fibre cable(ofc) throughout the length and breadth of the country, depending upon the location of their retail stores and corporate offices. This was for internal purposes, hence was not a breach of the non compete clause, which specifically mentions, the commercial competition between the brothers for a period of five years.

So now if Mukesh Ambani wants to enter the telecom sector, all he has to get is spectrum. For that, he can pick up any of the new players and strike a deal. There are many players who are stuck without capex for the rollout obligations. So it might be a distress sale. But also, considering the fact that spectrum is a scarce commodity, whoever is selling may not be in a hurry to sell their stake at a cheap rate.

If Mukesh Ambani, finally manages a hot deal, he has to arrange for the cash for purchase as well as the rollout and expansio n plans. Because at this point of time, with 3G coming round the corner, it would not make sense in investing only in 2G and neglect 3G. SO that makes a larger investment necessary by the senior Ambani to set his foot into the telecom sector. And this might cause a dent in the balance sheets of RIL which I am sure he would not like, at least in this kind of a market scenario.

SO lets keep our fingers crossed!!!!!!!! Let us hope that Mukesh also enters the telecom fray once again and lets get ready for the party, anyways!!!!!!!!!!!!!!!!!!!!!!!!!

ALso, dont expect anything in the near future. Because the non compete clause is for ten years and not for five years as mentioned above. Please click on the below link for more information regarding the non compete clause.

http://www.financialexpress.com/old/fe_arc...ntent_id=131647

[Arun 795]

Yes, the non-compete agreement is for 10 years, so its not going to happen until atleast 2015

[SUDYEcaZ 67]

Telecom business was a dream of Anil....he was the 1 who started the reliance GSM service(relaince Smart)

But Mukesh was a crook and somehow managed to start CDMA and took away all credit of starting Telecom Company, thats the reason why Anil was not present in inaguration/launch of the same

GSM was Anil's Dream so he is back with a bang in GSM arena...

Mukesh has laid fibre optics network, nut this network is to support his expanding business, not for commercial purpose

even if he think of Starting a telecom comppany it will be a gr8 flop

Huge investment, Low volume cant sustain the business, n people need better coverage...

Most important.....where is the spectrum....