Reliance Industries Ltd (RIL) today announced that it has entered into an agreement to acquire a substantial stake in Infotel Broadband Services (P) Ltd, which has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT. RIL will invest about Rs 4,800 crore by way of subscription to fresh equity capital at par to be issued by Infotel Broadband. Post this investment, RIL will own 95% of the equity and Infotel Broadband will be a subsidiary of Reliance Industries Limited.RIL plans to create world class state- of-the-art technology using an asset light RIL plans to create world class state- of-the-art technology using an asset light technology players, service providers, infrastructure providers, application developers, device manufacturers and others to leapfrog India to the 4G revolution.
RIL will comply with the non-compete and trademark agreements entered into at the time of corporate demerger and subsequent modifications made last month.
Commenting on the initiative, Mr. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited said “We see this as the next wave of value creation opportunity in the wireless broadband space. We believe this will pole-vault India’s economy into the digital world at an accelerated pace while creating next generation tools that will enhance productivity and create world-class consumer experiences.”