Reliance Globalcom acquires WiMax Co-eWave World for USD 500 million

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Mumbai, Apr 24 (UNI) Following its global acquisition spree, Reliance Globalcom, subsidiary of Reliance Communications, has acquired 90 per cent equity in British Virgin Island-based WiMax operator eWave World for USD 500 million (Rs 2,000 crore).

''Reliance will conduct its geographical expansion on WiMax technology that is estimated to be worth USD 10 billion by 2010 using eWave World's pioneering presence in 60 countries across five continents,'' Reliance Globalcom CEO Punit Garg said here today.

''We will acquire the advantages of economies of scale and access to emerging markets and provide an end-to-end quality communication,'' Mr Garg hoped.

''We have the advantage of being the first and ahead of the curve with very few competitors in the industry,'' eWave World CEO Simon Duffy.

The Company will acquire the stake of eWave World through its internal cash accruals that will be spread over the next two years and will close the transaction within the next 30 days.

The deal would enable Reliance Globalcom to provide 4G WiMax network in 50 countries, 75 per cent of the world's population with 1,15,00 km of IP enabled optic network.

''We believe that 4G WiMax technology will takeover existing 3-G communication technologies and provide data, video and voice communication via the broadband in the future,'' Mr Garg said.

''According to our Company's study, only 300 million out of the total global population of 6.6 billion have access to broadband connections that can be equated to a huge untapped market with 6.3 billion people requiring access to voice and video communication,'' Mr Garg explained.

Focus will initially be centered on the markets of China and India, where Globalcom's parent company RCom is already a major player. In China, eWave World in a Joint Venture (JV) with the Chinese government, already has 36,000 km of fibre in place to supply broadband connection of which there are 140 million subscribers.

Next in line would be 50 countries across the globe, where eWave World has applied for liscences which will be used as a launchpad for Globalcom to enter the markets with its technical, engineering and logistical network in the next three years.

Last year, Reliance Globalcom had acquired US-based Ethernet service provider, Yipes Holdings foor USD 300 million (RS 1,200 Crores) and is investing USD 200 million to increase its metro coverage in the US to over 35 cities.

UNI ZC GR AG1746

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