The battle between two billionaire brothers at the heart of India’s mobile industry has ended with one buying out the different.
Reliance Communications, owned by Indian billionaire Anil Ambani, will sell its mobile business to the rival Reliance Jio network owned by his older brother Mukesh, the companies announced Thursday.
Jio will take over Reliance Communications’ wireless assets, including high-speed mobile bandwidth, over 100,000 miles of optic fiber in addition to more than 43,000 cellphone towers.
Anil Ambani had announced his company’s exit coming from the mobile business earlier from the week, after months of struggling with the cost war across India’s telecom industry.
in which cost war, somewhat ironically, was started off by his brother, who will be India’s richest man. The two siblings divided up the Reliance empire their father created, after a bitter succession battle following his death in 2002.
Mukesh Ambani’s Jio network launched with great fanfare in September 2016, offering its customers six months of free 4G internet. The company’s blockbuster deals left most different players in India’s red-hot mobile market scrambling to compete, slashing their prices in addition to consolidating their businesses.
Current industry leader Bharti Airtel acquired the Indian subsidiary of Norwegian telecom firm Telenor. Britain’s Vodafone also decided to merge its India business with local rival Idea Cellular, in a deal in which will create a network with over 400 million subscribers.
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Jio has amassed more than 100 million subscribers in a little over a year, in addition to looks set to improve its footprint further by acquiring the Reliance Communications infrastructure.
“These assets are strategic in nature in addition to are supposed to contribute significantly to the large scale roll-out of wireless [services],” Jio said in a statement.
Reliance Communications, meanwhile, said the idea plans to use all the cash coming from Jio to pay off some of its $7 billion debt. The company said the idea expects to raise around $3.9 billion coming from the sale of its mobile infrastructure, however did not reveal the value of the final deal.
Neither company responded to requests for additional comment.
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Anil Ambani referenced the telecom turmoil triggered by his brother while announcing his exit coming from the mobile business earlier from the week.
“in which will be a crisis of the wireless telecom sector in addition to the idea has engulfed many people in addition to many companies,” he said. “in which will be something which will be not for 10 players to enjoy. in which will be For just two or three or four players to enjoy.”
sy88pgw (brand new Delhi) First published December 29, 2017: 7:39 AM ET