Mukesh Ambani of Reliance Industries has approved plans to enter in the Indian Telecommunications sector, when they get the right opportunity. They are believed to go for the lucrative bandwidth market. They will sell the telecom services as well as internal services to corporate rather than selling it to the individuals.
It is expected that they will unveil their intention of foraying into the telecom industry in their annual meeting which is to take place on June18th.
The Government is auctioning WIMAX; a technology that helps to speed up the internet access.RIL is believed to get one of these by setting up a SPV or the special purpose vehicle. RIL board met recently to carry out these plans.
RIL is believed to buy Futuristic’s arm Infotel broadband services. Mr.Nahata owner of this company denied this possibility.
The bid price rose to 12,257 crore on Wednesday after the completion of 119 rounds. Though there are surplus spectrum slots the bidding is on for Kerala, Delhi Mumbai Himachal Pradesh about 37%of the bid amount is from areas who are still in contest.Infotel is amongst the bidders.
Another interesting thing to be noticed is that that there was a agreement between Two brothers Anil and Mukesh Ambani that they would not compete with each other which restricted Mukesh to enter telecom as telecom is owned by Anil. That agreement stands no more barring in the gas-based power. This enables Mukesh to enter this Arena.
It can be rarely seen telecom companies selling only to other companies and not individuals. as is happening with RIL.RIL’S entry into the market will be like a hound among hares .this will add to woes of telecom operator which goes without saying.Google+