Reliance Globalcom, a fully owned subsidiary of Reliance Communications, has acquired 90% stake in UK-based Wi-Max operator eWave World. Globalcom is betting on eWave's Wi-Max licenses to tap international markets in Europe, Asia, and Latin America.
Globalcom has done it again. After a USD 300 million acquisition of Yipes Holdings last year, the company has bought out majority stake in a start-up company this year. Wi-Max operator eWave World is just two-years old and has not yet made any profits until now. But the company holds licenses and spectrum to start Wi-Max services in 20 countries. While Reliance Communications may take a while to launch Wi-Max services in India on account of spectrum scarcity, it is hoping to ride on eWave to tap international markets.
Punit Garg, CEO, Reliance Globalcom, said, "Wi-Max will give us access to over 50 countries in three years. We already have long distance network with submarine cable and cross-border terrestrial cables which reach 40 countries today and which we are expanding to 60 countries. With the acquisition of eWave World, we would be promoting end-to-end solutions to 60 countries."
Globalcom is also pumping in Rs 2,000 crore into the company over the next 2-3 years. These investments will help the company launch operations globally. One such project of the company that would go live after the investment, would be the 36,000 km undersea cable laid in China but not functional as yet.