Reliance Globalcom buys stake in eWave World

MUMBAI, INDIA: Reliance Globalcom, the global arm of Reliance Communications, has acquired a 90 per cent stake in British Virgin Islands registered WiMax operator eWave World. The financial terms of the acquisition were not divulged.

The Anil Ambani-controlled Reliance Communications is also planning to invest $500 million (Rs 2,000 crore) through the acquired company in the next two-three years. The investment would be to build and acquire WiMax networks across 50 countries across the world.

This is the third acquisition by the company as the company had acquired US-based Ethernet service provider Yipes Holdings for $300 million (Rs 1,200 crore) in July 2007. The group also acquired a 10 per cent stake in French WiMax chip manufacturer Sequans Communications in February this year for an undisclosed sum.

According to Reliance Globalcom chief executive officer Punit Garg, "This acquisition will help in creating value proposition for both share- and stakeholders of the company, while for RCom this will help the company to emerge as the leading WiMax operator in the world. eWave World has presence across the US and China other places and this will help in rolling out best in class future proof last mile network."

The acquisition will also help RCom to foray into the emerging 4G WiMax sector across 50 countries, servicing 75 per cent of global population.

eWave World was formed by a group of industry veterans and it holds WiMax licenses and spectrum in several countries, including China. The company has put down over 36,000 km of optic fibre in China that will enable it to provide broadband services in that country.

Reliance Globalcom, on its part, will also be looking at joining hands with eWave World to provide broadband and last mile access in China, Garg said.

The company will also make a $500 million investment to acquire WiMax licences and commence operations across Asia, Europe, Latin America and Africa by 2012.