Reliance Jio - Pan India 4G / LTE network

[Arun 795]

With the Non-compete Agreement scrapped couple of days ago between Mukesh Ambani and Anil Ambani, do you think Mukesh Ambani will give another shot at Telecommunications by starting a new telecom company?

In my opinion he may not and would enter into the financial sector, but he can't start a new bank since Reserve Bank of India will not give a license to an industry house. Maybe Mukesh will foray into Power sector?

[P. K. Daga 3]

He will definitely enter into telecom, sooner or later, may be takes over Videocon Telecom.

[dkaile 1,051]

Yes, he will.... but it will be 2-3 years down the line; as he needs time to recuperate in financial wranglings...

[me_saket 73]

might be buying loop mobile or S tel

[prafull4u 24]

I dont think he is going to enter Telecom sector sooner..... Financial and infrastructure for sure

[atulaggarwal 0]

I don't think he would be entering Telecom, at least for quite some time.

But we should be ready for some big moves, one of the sectors may be entertainment... (he already has Mumbai Indian IPL Team)

Wat say?

Cheers...

[ultapulta 3]

if he will enter the telecom market then he will not start from scratch.....

he will buy out a existing player.....

[@v@nit 3]

I don't think he will enter in Telecom market

Edited May 25, 2010 by @v@nit

[csmart 472]

his looking at power and infra.. telecom may be later as too many players and doesnt make sense to enter now... and if he enters it will be surely thru buyout...

[chintan1 6]

I don't think he will start from scratch . He will either buy any existing Telecom company . BTW it was Mukesh's dream to start Reliance India Mobile (RIM) on ealry days . So he will surely venture in telecom market sooner or later ....

[vishalmcp 8]

he may plan to buy existing players, also would plan to come in power or infrastructure.....

[parin 857]

With this COmpetition in communication business & margins going down day by day

i dont think its wise for Mukesh to enter here

Even than if he enters we people are going to benefited

[P. K. Daga 3]

I have heard a pretty strong rumor that MDA group is going to invest 25000 crores in RCOM for a sizable share, Anil would still be the Chairman. Well this statement is even partly supported by this article

http://timesofindia.indiatimes.com/Biz/India-Business/Mukesh-may-redial-telecom-now/articleshow/5966369.cms

Edited May 25, 2010 by P. K. Daga

[vvinayakpai 26]

I really wish he enters into telecom. I remember reading an article a few years ago that he was setting up OFC all along the existing pipelines of RIL and RIIL. Anil Ambani had raised objections quoting the non compete agreement. The defense taken by Mukesh then, was that the OFC's were laid out to cater to the Reliance Retail Venture(something like a capitive venture), which was permitted by the earlier MoU.

Analysts were of the opinion that the scale of the OFC laying was very much like a pan India operators network.

[Arun 795]

Mukesh Ambani venturing into telecom?

Press Trust of India, May 28, 2010 - New Delhi

Within days of revoking a non- compete agreement that his group had with his younger brother Anil, RIL Chairman Mukesh Ambani is believed to have held a long-drawn-out discussion with telecom czar Sunil Mittal.

The meeting took place on the day Mukesh Ambani arrived in Delhi on May 26 to attend the Prime Minister's Council on Trade and Industry meeting.

A Reliance Industries spokesperson declined to comment either on the meeting or the discussions held, but a source said CII President Hari S Bhartia was also present.

The two Ambanis on May 23 decided to scrap a non-compete agreement reached by them in January 2006. But, they decided that Mukesh will keep out of gas-based power plants till 2022.

They had also announced that day that they would expeditiously negotiate a gas supply agreement in accordance with the Supreme Court order of May 7.

There is speculation that Mukesh Ambani could venture into the telecom sector soon and sources indicated that he could pick up stake in one of the Indian telecom players, particularly those who acquired licences in 2008.

Sources also said that Mukesh is talking to new licence holders including Videocon, which has pan-India licence and is looking for a partner to bring in capital to roll out services.

Mukesh had overseen setting up of the telecom business in the undivided Reliance empire (under the brand Reliance Infocomm), but the business went to younger brother Anil Ambani when the brothers decided to part ways in June 2005.

Anil has since renamed the telecom venture as Reliance Communications.

[me_saket 73]

target are

loop mobile S tel and videocon

OR idea

[krishin.rajani 3]

Considering RIM as MDA's dream- it's very much psbl that he might enter into telecom sector soon

[chintan1 6]

Mukesh Ambani may enter telecom business with Idea, Videocon Here is the link for ET

ET

Edited June 2, 2010 by chintan1

[Arun 795]

RIL may offer 3G, WiMAX devices in telecom splash

Jun 03, 2010 at 0010 hrs IST

Financial Express

Five years after its exit from the country’s booming telecom sector, Mukesh Ambani’s Reliance Industries Ltd (RIL) is plotting the road map for a return trip. However, this time around, it won’t be plain vanilla telecom services that RIL will be interested in, but rather the emerging segments of 3G and WiMAX. According to executives familiar with the development, the initial strategy is not to enter as a telecom operator, though this cannot be ruled out in the long run.

Officials told FE that RIL is looking at partnering major handset makers to help them produce low-cost 3G handsets at Rs 4,000-5,000, apart from WiMAX application devices. Currently, the handsets cost over Rs 16,000 on an average.Once the low-cost handset base is built, RIL would be open to buying bulk airtime from service providers and bundling them with handsets, to be sold via Reliance Retail stores.

“It would be like re-selling airtime through a franchise or mobile virtual network operator model, but would be suitably improvised to make it unique,” an official said.

The airtime-bundled handsets would be co-branded, stamping RIL's entry into telecom.“If we are able to drive down costs for 3G and WiMAX-based application services in a major way and popularise them, we would have created a similar wave which we did in CDMA with schemes like “Monsoon Hungama,” the official added.

With the valuation of telecom companies having fallen over 50% in just a year, RIL can, at a later stage, look to acquire a telecom operator either in the domestic market or globally. An RIL spokesperson declined to comment. After the Reliance group split in 2005, Reliance Infocomm went to younger brother Anil Ambani, who renamed it Reliance Communications and launched GSM services. The demerger was followed by a non-compete agreement between the Ambani brothers, which effectively prevented RIL from entering telecom sector at a time when it was going through blazing growth. The agreement was scrapped on May 23, and FE was the first to report that the company was likely to enter telecom and thermal power sectors.

Launched in mid-2003 by the erstwhile Reliance Infocomm, Monsoon Hungama has been the most successful scheme in the history of India's mobile telephony, offering a phone connection and handset for merely Rs 500. The CDMA platform on which Monsoon Hungama was launched, was a novel and affordable alternative to the masses. RIL hopes to do the same with 3G and WiMAX.

[vvinayakpai 26]

I also read another report on Etisalat eyeing RCOM stake. Then their 45% stake in Etisalat DB would have to be sold out. So if the Balwas group is not interested in increasing their stake then I am sure it would be a good option for Mukesh Ambani.

[vvinayakpai 26]

Another option is the entry of RIL as a MVNO, something on the lines of the future group entry entering through Tata Docomo in the brand name of T24 (not sure about the name).

And also, a preferred partner might be the Videocon Mobile Services Company. Because if i remember right, a director of Reliance Industries Ltd. Mr. Manoj Modi owns a 15% stake in Videocon Mobile Services. I am not saying anything for sure, but this is a huge opportunity for both companies. Beccause Videocon can reduce their capex by inducting RIL as a value partner.

[csmart 472]

RIL will enter telecom... today ET front page headline...

Full article...

[Arun 795]

Well, so the topic is answered finally:

Reliance Industries Limited to Buy 95% of Infotel

Wall Street Journal - June 11, 2010, 7:56 A.M. ET - Mumbai

Reliance Industries Ltd. Friday said it has agreed to buy a 95% stake in Infotel Broadband Services Pvt. Ltd. for about 48 billion rupees ($1.02 billion.)

The deal will mark the energy major's first entry into the telecom sector after a non-compete agreement between Reliance Industries' majority owner Mukesh Ambani and his brother Anil was scrapped on May 23.

Infotel Broadband, a unit of HFCL Infotel Ltd., Friday emerged as the only pan-India winner in a government-led auction of radio waves to offer broadband wireless services.

Reliance Industries will invest by subscribing to fresh equity capital issued by Infotel Broadband.

[csmart 472]

next is videocon for RIL...

[Himanshu Singh 19]

                                            Reflecting brotherly love, Anil compliments Mukesh on telecom 

NEW DELHI: The infamous Ambani battles appear to be a thing of past as Anil Ambani today welcomed his elder brother Mukesh-led RIL's entry into the telecom space. 

And as if not to compete with RIL, which acquired the sole pan-India broadband licensee Infotel, Anil's group firm Reliance Communication exited the 16-day long wireless spectrum auction a week ago.

Even a whiff of coming together of the two brothers has seen share prices of their group companies soaring and the latest gesture by Anil Ambani prompted market watchers to wonder if this was the beginning of the coming together of the two billionaire brothers, who made headlines for the last six years for their bitter fights.

"We welcome the entry of Reliance Industries into the high potential Wireless Broadband space," an Anil Ambani group spokesperson said, within hours of RIL announcing acquisition of Infotel for Rs 4,800 crore.

As a result of the deal, RIL would also have to pay Rs 12,872 crore to the government towards 20 Mhz spectrum.

Incidentally, RCom was a major bidder for 5 Mhz spectrum for 3G telecom services and acquired the most number of circles including the prized Mumbai and Delhi, for over Rs 8,000 crore.

"As leading telecom infrastructure and content service providers, we look forward to offering our services to RIL and other BWA players, even while we compete for customers in the market place through our choice of different technologies," RCom said in a statement.

The statement assumes significance in the wake of a truce signed by both Mukesh and Anil to end the non-compete agreement, which was part of the family settlement to divide Reliance empire in June 2005. Differences had cropped up much before.

"RIL and Reliance ADA group are hopeful and confident that all these steps would create an overall environment of harmony, cooperation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both the groups," the two Ambani groups had said in identical statements last month.