Reliance Globalcom acquires Britain's eWave World

Anil Ambani-promoted Reliance Globalcom, a subsidiary of Reliance Communications Ltd (RCL), has acquired 90% stake in eWave World, a UK-based telecom company engaged in offering wireless telephony services using WiMAX technology. However, Reliance refused to divulge the exact amount of the acquisition.

Reliance Globalcom would invest about $500 million (Rs.20 billion) over next two-three years to build and acquire WiMAX networks in emerging markets in Asia, Europe, Latin America and Africa. The acquisition would be funded internally.

The acquisition of eWave is a significant deal for RCL as it would help the company reach out to millions of customers in over 50 countries and offer broadband service. With the backing of Reliance Globalcom, eWave World will deliver broad band services to business and residential customers in numerous emerging markets.

eWave World holds WiMAX licenses and has received spectrum to commence WiMAX service in several countries. The 4G WiMAX network in 50 countries would enable Reliance Globalcom to offer services to over 75 percent of global population in combination with Reliance Globalcom's 115,000 km IP (internet protocol) enabled network spread across six continents.