Mukesh Ambani acquires Infotel, to offer Pan-India LTE services

12 Jun

Mukesh Ambani’s Reliance Industries Limited (RIL) has acquired a 95 per cent stake in little-known company Infotel that has won BWA spectrum in all 22 circles in the just-concluded BWA auctions. “RIL will invest about Rs 4,800 crore by way of subscription to fresh equity capital at par to be issued by Infotel Broadband. Post this investment, RIL will own 95% of the equity and Infotel Broadband will be a subsidiary of Reliance Industries Limited,” the company said in a statement.

RIL is backing LTE and not WiMAX for its services. “A single 20 MHz TDD spectrum when used with LTE (Long Term Evolution) has the potential of providing greater capacity when compared to existing communication infrastructure in the country,” the statement said.

What’s peculiar about Infotel is that it does not have any 2G or 3G spectrum to offer voice services. This makes it very likely for Infotel to join hands with another carrier (or carriers) as it is the only company to have a Pan-India BWA licence.

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