Reliance Industries Setting Up Broadband Infrastructure…For IPTV Foray?

Reliance Industries (Mukesh Ambani Group) apparently has laid around 50 percent optic fibre cable cable network in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra and Gujarat, which it will use for a communication and data transfer network for managing RILs supply chain, and linking retail outlets, special economic zones, and petroleum and transportation businesses. [via ET] Now this apparently hasn’t gone down well with the Anil Ambani camp (ADAG) which owns Reliance Communications, since they believe it violates the non-compete agreement between the two brothers, which lapses 10 years after the settlement (June 2005).

This setting up of an optic fibre agreement is significant since it would be used to power RILs media and entertainment business, of which IPTV is expected to be a part; additionally it could be used to power services by third parties. This is fairly similar to what Railtel has in mind. Above all, imagine what an oversupply of network capacity could mean for broadband.

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