Anil Ambani group firm Reliance Communications Ltd., or RCom, announced the acquisition of Digicable, the country's largest cable TV service-provider, in an all-stock deal.
RCom board approved the proposal on Thursday, but did not state the value of the deal.
The fresh acquisition came on the heels of the recent merging of its telecom tower business with GTL infrastructure Ltd., in a Rs.50,000-crore deal.
The new entity, “Reliance DigiCom”, will integrate RCom's DTH, IPTV and Retail broadband operations, with Digicable. It will have a combined subscriber base of 11 million homes, the company said.
The deal will create India's largest and the world's fifth largest entity offering full-full-suite of Triple Play services–Digital TV, Ultra High-Speed Broadband and Voice services.
The Digital TV comprising DTH, Cable, IPTV, HITS, will offer over 500 digital quality and 100 High-Definition channels on 3D-ready TV platform, while Ultra High Speed Broadband Access will offer internet speeds of up to 100 MBPS speeds, the company said.
RCom, credited with the fastest ramp-up of DTH subscribers in the world, is confident of building an extremely profitable business model from a high potential, but currently fragmented/underdeveloped TV and Broadband market, in the country.
Established in August 2007, Digicable is one of the largest Cable TV service providers in the country. It is promoted by Jagjit Singh Kohli along with Yogesh Shah. Kohli is a pioneer in the Cable TV and Broadcasting industry with several path-breaking achievements to his credit. RCom led the telecom revolution in India by growing its subscriber base to over 100 million in just five years.
RCom Chairman Anil Ambani said, “The Digital TV and Broadband space are poised for similar explosive growth in the years ahead. With this move, we hope to lead the next revolution in digital home entertainment in India, by offering a world class TV experience and ultra high-speed broadband capability to a billion people.”
Source: RTT News