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Reliance plans stakes in cable firms
16 January 2012
Indian multinational seeks stakes in cable operators to boost planned 4G broadband services
India’s Reliance Industries plans to acquire at least a 26% interest in major cable operators in the country, as it looks to incorporate cable companies and multi-system operators to offer last mile connections for 4G broadband products, according to Business Standard.
The Indian group has reportedly approached several firms with the offer including Digicable Networks, Hathway Cable. It has also taken the offer to multi-system operators and smaller firms that have a good regional footprint, the report stated.
RIL recently announced its plans to invest in two major units of broadcaster TV18 through rights issues, in order to provide content for its planned 4G broadband operations. It already owns a 95% share in Infotel Broadband, which has countrywide broadband wireless access and is considering strategies to offer wireless broadband and digital services, according to Business Standard.
The government is requiring cable operators to invest heavily in digitisation. Several have already charted plans to raise funds, including selling stakes. GTB
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