Reliance to invest $5 billion in telecom
After having nurtured the telecom sector of his company and the carving of the business meant that the business went to younger brother Anil, the elder brother Mukesh Ambani seems to be in a tearing hurry.
Mukesh Ambani-led RIL’s foray into the telecom sector will entail an investment of about $5 billion, for which it is open to sharing infrastructure of younger brother Anil’s group firm Reliance Communications, company officials said. The flagship firm of Ambani, who is known for making ultra-mega projects, would invest about a billion dollars for rolling out broadband services to attain a target of 100 million subscribers through the just acquired Infotel in five years, RIL top officials told analysts last night.
RIL acquired Infotel for Rs 4,800 crore on the day the Nahata group firm emerged as the sole player to have bid successfully for all-India spectrum at the end of the 16-day-long auction conducted by the government on Friday.Apart from this, the cash-rich RIL will have to pay Rs 12,872 crore to the government as the licence fee for spectrum bagged by Infotel, which would become the subsidiary of the Mukesh Ambani group’s flagship company.
Incidentally, the second largest largest telecom player, RCOM, bagged the highest number of circles along with Bharti Airtel for the 3G license auction, which concluded recently.
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