Free Trial

Global Telecoms Business Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.


Reliance brothers consider peace pact

03 November 2011

Billionaire siblings Mukesh and Anil Ambani are in talks over a potential deal for telecom assets

Read more: Reliance RCom Reliance Industries Ambani India Reliance Infratel

Estranged Indian billionaire brothers Mukesh and Anil Ambani are considering collaboration in the telecoms industry, according to a report that has sparked off rumours that the brothers may merge their business empires.
According to the Financial Times, Reliance Industries, controlled by Mukesh Ambani, is in talks to use telecoms tower infrastructure owned by the Anil Ambani’s Reliance Communications to introduce Mukesh’s broadband and wireless internet services. The report added that Reliance Industries is not eyeing any share in Reliance Communications.
A deal would benefit Reliance Communications with more revenues, following failed attempts to offload its Reliance Infratel towers unit. The operator had a debt of about $7 billion at the end of March. In September 2010, GTL Infrastructure backed off from its $9 billion deal to acquire Reliance Infratel, which has 50,000 towers.
The Reliance group was founded by their father, Dhirubhai Ambani. He retired in 1986 but his sons disagreed and then split the group into two companies. Dhirubhai Ambani died in 2002.
According to the FT report there have been speculations that Mukesh Ambani could submit an offer to acquire Anil Ambani’s telecoms assets, as his company requires infrastructure for its internet business. Reliance Industries has already purchased Infotel, the lone firm that obtained permits for a countrywide 4G spectrum allotment. GTB  

Further reading: 
Reliance gets $1.93bn loan from China 10 Mar 2011 
Reliance raises $255m for 3G refinancing 19 Jan 2011 
Reliance rival to compete in Indian telecoms 14 Jun 2010




Comments
  • Guess it's time to converge again and we are happy about it. Partnership can do wonders and is better than rivalry. Good news for consumers. Reliance is known to break price barriers and bring about a revolution in any domain that they enter. They did the same when they entered the mobile space and revolutionized they way Indians communicated with each other. They can and will do the same wherever they venture.

    Mohit Chauhan | 03 Nov 2011

View all comments<

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.



Advertisements