RCom wants to expand services in 50 countries in EU
(IBTimes) - Anil Dhirubhai Ambani Group (ADAG) company Reliance Communications (RCom) has expressed interest in acquiring a Europe-based specialty WiMax (Worldwide Interoperability for Microwave Access) operator for about $300-400 million (Rs.1200-1600 crore) and plans to become a major player in the international telecommunication market by expanding the WiMax services across 50 countries in the next 2-3 years.
According to a RCom official, subject to regulatory approval and other conditions, the deal to acquire the European operator will be complete by next fiscal. "The acquisition will be made by Reliance Globalcom," the official said. Reliance Globalcom is the global arm of RCom.
This is RCom's first overseas foray in the WiMax market, the official said.
If the deal is successful, this will become RCom's second acquisition in the WiMax space, the first being in February, when it acquired a major stake in French WiMax chip manufacturer Sequans Communications.
The acquisition will also allow RCom to access a fiber optic network of 50,000 km in China, connecting the top 40 cities there.
The European Wimax operator (whose name was not disclosed) owns licenses and spectrum for WiMax operations in 20 countries across Eastern Europe, Africa and Latin America and will provide a foothold for RCom to expand into the overseas market, he added.
The deal is part of RCom's 'Vision 2012' a plan to expand its reach across countries in the Saarc region, Mediterranean and other South African nations and use undersea cables and WiMax-enabled last mile access in a similar number of geographies.
RCom, which is providing WiMax services across 18 cities in India, plans to offer hi-speed broadband, video, voice, data and 4G services internationally and connect over 2.5 billion individuals and corporate over its WiMax network.
Tata Communications and BSNL are the two other major players in the WiMax market in India.
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