Reliance Globalcom acquires 90 per cent in UK WiMAX operator eWave

24 April 2008

Mumbai: Reliance Globalcom, a subsidiary of Anil Ambani-controlled Reliance Communications, has acquired 90 per cent stake in eWave World, a UK-based telecom company for an undisclosed amount.

The acquisition was done through Reliance Infocom BV, a division of Reliance Globalcom and wholly owned subsidiary of Reliance Communications.

Reliance Globcom will use its acquisition to invest around $500 million to build and acquire WiMAX networks in emerging markets in Asia, Europe, Latin America and Africa over the next 2-3 years, as part of a strategy to build up a series of WiMAX networks worldwide.

Recently, eWave World had entered into a joint venture in China to invest in nationwide broadband operations. eWave holds WiMAX licences and has received spectrum to commence WiMAX services in several countries.

Speaking to reporters Punit Garg, CEO of Reliance Globalcom, said the company would fund the acquisition through internal accruals.

The acquisition of eWave would help Reliance Communications to reach out to millions of customers in over 50 countries and offer broadband service.