Reliance Communications (RCom) is planning to set up WiMax networks across 50 countries in the next three years. To get a head start, RCom is planning to acquire a European WiMax operator that has WiMax licences in 20 countries across Eastern Europe, Africa and Latin America, in a $300-400 million (Rs 1,200-1,600 crore) deal.
The acquisition of the European company will enable RCom set up fresh WiMax network in these countries and scale up the existing network. This would be company’s second acquisition in the WiMax space. In February, the company had acquired a significant stake in a French WiMax chip manufacturer Sequans Communications. The worldwide interoperability for microwave access (WiMax) is a telecommunications technology that provides wireless data over long distances in a variety of ways.
RCom has set up WiMax networks in 18 cities in the country. As per RCom’s `Vision 2012’, the company intends to use undersea cables and WiMax-enabled last mile access in a similar number of geographies. It intends to provide highspeed broadband services, voice, video and data suite and 4G services, in the global market. The company intends to connect over 2.5 billion individuals over WiMax networks by then.
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The Federal Reserve on Tuesday slashed a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the country into a severe recession. The latest action brought the federal funds rate -- the interest that banks charge each other -- down to 2.25 percent, the lowest point since late 2004. It marked the second back-to-back cuts of three-fourths of a percentage point. It is the sixth cut in the past six months and comes at a time when the Fed is trying to keep the economy from slipping into recession - although many think it's already entered one.
The Fed cited a weakening labor market and a slowdown in spending by consumers, as well as a continued crisis in financial markets and tight availability of credit to justify the cut. The Fed acknowledged in its statement that inflation pressures have grown more than expected. However it still believed that the greater risk to the economy was that of slowing growth, not a spike in prices.
The reduction in the funds rate was designed to lower borrowing costs and boost spending by consumers and businesses and thus increase economic activity. Economic growth slowed to a near standstill in the final three months of this year as the economy was hit by a series of blows including the credit crunch, a prolonged housing slump, rising unemployment and surging energy prices.
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The Q4 advance tax figures, a bellwether of corporate profitability, announced yesterday indicate that the growth momentum is likely to continue amidst the global concerns looming in the backdrop. Expected slowdown in economic growth has not yet impacted corporate bottom line. It may be noted that the companies are required to pay the tax in four quarterly installments, the last being on March 15 every year.
Two companies saw the highest growth in terms of advance tax payout. Financial Services Company HDFC more than trebled its payout, while diversified conglomerate Reliance Industries saw the tax outgo nearly treble for the quarter.
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