Here is a very interesting development on the 4G LTE-Broadband front. Mukesh Ambani’s RIL had invited bids for Telecom Infrastructure [Fiber and Tower] and Economic Times journalists who spoke to insiders in the deal send feelers that Reliance Communications [RCom ]is probably the choice for RIL’s 4G LTE Broadband Rollout. RCom has fantastic dark fiber network as well as international connectivity through Flag Telecom now known as Reliance Globalcom.
The Telecom Story in India is not as plain as written in the press. Here is an untold piece of the story. Anil ambani was not sure of winning GSM license for RCom. Hence his Swan Telecom now Etisatalt DB was brought to life but full of scandals. What the CBI and Enforcement Directorate have not investigated in the 2G Scam is the flow of Money into Etisalat DB. RCom is cash starved signs an agreement with Etisalat DB for Telecom Infrastructure Sharing worth Rs 10,000 Cr over a 5 to 10 year period. This gives some breather to RCom but is still bleeding with the Tariff War and CAPEX in both GSM and CDMA.
Mukesh Ambani’s advisers set an eye to takeover RCom. However, not an easy task since 65%+ is held by Anil himself and a Red Balancsheet doctored to look Black. Whispers on Dalal Street that Anil Ambani may be thrown behind bars in the 2G Scam at the behest of whom you know 😉
Which God Father has brokered the deal between RCom and RIL? There is absolutely no transparency in Governance by the Government nor Corporates in India. All in All, the Prime Minister who should have intervened two years ago in the Telecom Scam has started cleaning the mess a bit too late as the Economic Growth has slowed down. But I am the Most Optimistic Man for this Sector and Broadband is the way to go 🙂