Fidelity bank banner Bayelsa State banner
India’s richest man wins telecom war, buys out billionaire rival

By Rishi Iyengar on 30/12/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,760

•Telecoms tycoon Mukesh Ambani
•Telecoms tycoon Mukesh Ambani

The battle between two billionaire brothers at the heart of India’s mobile industry has ended with one buying out the other.

Reliance Communications, owned by Indian billionaire Anil Ambani, will sell its mobile business to the rival Reliance Jio network owned by his older brother Mukesh, the companies announced Thursday.

Jio will take over Reliance Communications’ wireless assets, including high-speed mobile bandwidth, over 100,000 miles of optic fiber and more than 43,000 cellphone towers.

Anil Ambani had announced his company’s exit from the mobile business earlier in the week, after months of struggling with the price war across India’s telecom industry.

That price war, somewhat ironically, was started by his brother, who is India’s richest man. The two siblings divided up the Reliance empire their father created, after a bitter succession battle following his death in 2002.

Mukesh Ambani’s Jio network launched with great fanfare in September 2016, offering its customers six months of free 4G internet. The company’s blockbuster deals left most other players in India’s red-hot mobile market scrambling to compete, slashing their prices and consolidating their businesses.

Current industry leader Bharti Airtel acquired the Indian subsidiary of Norwegian telecom firm Telenor. Britain’s Vodafone also decided to merge its India business with local rival Idea Cellular, in a deal that will create a network with over 400 million subscribers.

Jio has amassed more than 100 million subscribers in a little over a year, and looks set to increase its footprint further by acquiring the Reliance Communications infrastructure.

“These assets are strategic in nature and are expected to contribute significantly to the large scale roll-out of wireless [services],” Jio said in a statement.

Reliance Communications, meanwhile, said it plans to use all the cash from Jio to pay off some of its $7 billion debt. The company said it expects to raise around $3.9 billion from the sale of its mobile infrastructure, but did not reveal the value of the final deal.

Neither company responded to requests for additional comment.

Anil Ambani referenced the telecom turmoil triggered by his brother while announcing his exit from the mobile business earlier in the week.

“This is a crisis of the wireless telecom sector and it has engulfed many people and many companies,” he said. “This is something which is not for 10 players to enjoy. This is for two or three or four players to enjoy.” (CNN)

Source News Express

Posted 30/12/2017 11:59:19 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Are Nigerian judges a basket of deplorables?

Abe decries absence of private investors in Rivers...

Senate condemns demolition of Kaduna APC faction’s secretariat...

Military foils plot by ‘evil men’ to disrupt...

Anambra SWAN suspends chairman for inefficiency, high handedness...

Saraki visits female Sergeant-At-Arms injured by Senate invaders...

Senate Confirms Appointment Of Eight Resident Electoral Commissioners...

Forex: CBN assures of more interventions

Reps want revamp of textile industry

Breaking News: FG releases more names of oil...

Ngige shocks Anambra guber election tribunal with 40-bag...

Northern Governors meet to brainstorm on security issues...

 

Latest News PDP National Convention: Party leaders disagree over venue Labour set for nationwide strike over minimum wage Osun Election: Protesters storm INEC Office, as PDP heads to court Court orders APC to conduct fresh election within 30 days Modric ends Ronaldo-Messi Era, wins FIFA Best Player of the Year Award Security operatives swoop ‘on PDP leaders in Osogbo’ Evil son kills father to inherit millions of dollars Troops rescue 73 Boko Haram hostages Bayelsa receives N24.16bn Paris Club refunds, slams Lokpobiri over N800bn debt claim Okowa inaugurated to chair PDP Convention Planning, receives award today in New York FRSC screens 300,000 applicants for 4,000 jobs I have no regrets, says kidnapper after arrest

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (396,964 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,987 views) Shameless Genevieve Nnaji exposes breasts in public (308,818 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,810 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (232,508 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,752 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (200,266 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,794 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,922 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,494 views) Lagos plane crash: Journalist releases victims’ names (158,280 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (147,001 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,627) Business Verdict (52) Columnists (933) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (653) Global Business Monitor (301) International (2,432) Interview (165) Live Commentary (28) Love Matters (144) News (39,118) Opinion (1,111) Pidgin (11) Politics (6,740) Religion (873) Sports (1,706) Stock Watch (34) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Anthony Joshua vs Alexander Povetkin: Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement