Tata communications may offer telecom infrastructure to RIL (India)
Tata Communications, a leading telecommunications provider in India, may provide Mukesh Ambani’s energy company, Reliance Industries Ltd. (RIL), with telecommunications infrastructure as the company is reportedly planning to launch wireless broadband services. According to reports, Srinivasa Addepalli, senior vice president (corporate strategy and communications), Tata Group firm, said that the operator had made its presentations to Reliance.
As per sources, RIL bought 95 per cent of Infotel Broadband Services Ltd., for which it reportedly paid US$ 960 million, so as to offer wireless broadband services across the country. Further, reports reveal that Reliance aims to offer 4G wireless broadband services across India in 2012, along with its new range of affordable tablet computers.
Industry analysts have reportedly said that a business deal with reliance would be beneficial to Tata communications as it would increase their revenue thereby reducing their loss, which has gone down from US$ 40 million in 2010 to $32.5 million in the second quarter of 2011.
Reliance Industries may launch cheaper tablets in collaboration with RCom (India)
Reliance Industries, one of India’s largest private sector companies, led by Mukesh Ambani, may enter into a joint venture with Anil Ambani’s Reliance Communication in an attempt to launch cheaper tablet devices for as less as $120. As per reports, Reliance may make use of RCom’s towers and fiber optic cables to offer high-speed data services to users. The two companies will be coming together for the first time after their split in 2005. However, sources claim that RCom will not be involved in any equity investment in this deal.
Further, sources claim that apart from the towers, Reliance may also use RCom’s transmission facilities like domestic and international long distance networks to carry its data traffic. Consequently, Reliance will reportedly have access to as many as 50,000 towers of RCom across 1,500 cities in India. According to reports, in May 2010, both the Ambani brothers terminated an incomplete agreement which was in place for five years, thereby allowing Reliance Industries to re-enter telecom, following which it became the only company to acquire licenses for wireless broadband services across the nation for US $2.6 billion.
BCG adds Bharti, Lupin in 100 global challengers list
Boston Consulting Group (BCG) has added telecom major Bharti Airtel and drug-maker Lupin into its list of 100 companies from the emerging markets which can challenge existing Fortune 500 firms over the next five years.
In a report titled ‘ BCG Global Challengers 2011, released globally, it states that these 100 firms, mostly from China, India, Brazil, Mexico and Russia, and for the first time four companies from South Africa and Egypt, are the hidden engines of the global economy and can qualify for inclusion in the Fortune Global 500 in five years as they grow faster and more profitably than MNCs from developed world.
This year, overall, there are 23 new challengers, including Bharti and Lupin, in the list from 16 countries. The BCG Global Challenger series was launched in 2006 to identify companies shaking up the global economy.
According to reports, the 100 challenger companies grew annually by 18 % during 2000-09. If they continue on their current growth path, they could collectively generate US$8 trillion in revenues by 2020, an amount roughly equivalent to what the S&P 500 companies generate today. These challengers’ revenue stood at US$ 1.3 trillion in 2009.
According to BCG India Partner & Director and a co-author of the report Sharad Verma, as competition intensifies, the boundaries between these two distinct sets of companies will continue to blur. Many challengers are creating disruptive business models and coming up with new and better ways to get the job done in many industries. Bharti Airtel exemplifies this approach with its innovations in outsourcing and distribution.
Of the 20 Indian firms in the list, six are from the Tata Group – TCS , Tata Steel , Tata Motors , Tata Global Beverages , Tata Communications and Tata Chemicals . Others are RIL , Infosys , L&T , M&M , Bajaj Auto , Wipro , Hindalco , Crompton Greaves , Dr Reddy’s , Bharat Forge , Suzlon and Vedanta .
RIL to take over 95% stakes in Infotel (India)
www.WirelessFederation.com/news: Mukesh Ambani-led Reliance Industries Limited (RIL) has entered into an agreement with Infotel Broadband Services (P) Ltd, owned by the son of Mahendra Nahata, managing director of Himachal Futuristic Communications Ltd (HFCL) to acquire a substantial stake in the latter, thus putting its interest firmly in the telecom space.
According to Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, RIL see this as the next wave of value creation opportunity in the wireless broadband space and he believes this will pole-vault India’s economy into the digital world at an accelerated pace while creating next generation tools that will enhance productivity and create world-class consumer experiences.
Rs 4,800 crore will be invested by RIL by way of subscription to fresh equity capital at par to be issued by Infotel Broadband. Post this investment. Infotel Broadband will be a subsidiary of Reliance Industries Limited which will own 95% of the equity. Infotel has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT.
RIL plans to create world class state- of-the-art technology using an asset light strategy and its initiative will usher in a wireless broadband revolution in both urban and rural areas by providing end-to-end data solutions for business enterprises, social organisations, educational and healthcare institutions and Indian consumers.
