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RCom Acquires UK Based WiMax Operator; Plans $500 Million Investment In 2-3 Years

Indian telecom major Reliance Communications has acquired 90 percent stake in UK based WiMax co eWave World. The acquisition has been made through Reliance Infocom BV, a division of Reliance Globalcom, which is a subsidiary of Reliance Communications. The value of the deal has not been disclosed, though, as always, some very big investment numbers here from Reliance – Globalcom intends to invest around $500 million over the next 2-3 years to build and acquire WiMax networks in Asia, Europe, Latin America and Africa.

At some level, this also appears to be an acquisition of licenses and spectrum — eWave World recently entered into a joint venture to invest in broadband operations in China, and holds WiMax licenses and has been granted spectrum for WiMax “in several countries”…Rcom is targeting WiMax services in 50 countries by 2012. Reliance Globalcom had acquired Yipes Holdings Inc for $300 million. Globalcom also tied up with UAE based operator Du, and has plans for an IPO. This announcement, incidentally, comes just 5 days before the announcement of RCom’s annual earnings. [via BSE]

One Response to “RCom Acquires UK Based WiMax Operator; Plans $500 Million Investment In 2-3 Years”

  1. Mobile WiMAX set to enter a new growth trajectory

    The acquisition by RCom of controlling interest in eWave World and its intention of investing $ 500 million in rolling out WiMAX networks is an endorsement by one of the largest companies in India in the field of providing mobile and wireless solutions. Coming as it does on the heels of an announcement by Tata communications of investing $500 million in rolling out WiMAX networks in India, over $ 2 billion is now planned to be spent by the WiMAX companies for networks in India and other regions of the world ( Latin America, Middle east, Africa and Asia).

    A series of Mobile network launches in the recent past ( Bulgaria( Max), Canada ( Inukshuk), USA( Craig wireless), Vietnam, Singapore, Malaysia, India and others) is now set to repeat a “GSM” in creating compatible wireless broadband networks which will soon have roaming arrangements as well.

    Increasing availability of mobile WiMAX wave 2 devices with MIMO ( pre-certification as well as certified) and the quickening pace of certification by the WiMAX forum is increasing the mobile WiMAX ecosystem very sharply. The pace of developments in this field is very rapid after the operators are satisfied on the performance which can be achieved and the services which can be delivered over the WiMAX networks.

    With Dan Hesse, CEO of Sprint agressively defending the the doubts on rollout of XOHM, the scene for WiMAX is not so bleak. After over 350 trials around the globe commercial networks are being added one a week signifying a new trajectory for Mobile WiMAX in the world.