Friday, May 2, 2008

Reliance Globalcom buys stake in BVI-registered eWave World

Last week, Reliance Globalcom (the global arm of Reliance Communications) has acquired a 90% stake in eWave World, British Virgin Islands-registered WiMax operator.

This is third acquisition deal of the Reliance Communications, after it had acquired US-based Ethernet service provider Yipes Holdings for $300 million in July 2007, and a 10% stake in French WiMax chip manufacturer Sequans Communications already this year, for an undisclosed sum. Reliance Communications is also planning to invest $500 million through the acquired BVI company in the next two-three years, in order to build and acquire WiMax networks across 50 countries worldwide.

By words of Reliance Globalcom CEO Punit Garg, BVI-registered eWave World is widely present across the US and China, and the acquisition will help Reliance Communications to enter the emerging 4G WiMax sector across 50 countries, servicing 75% of global population. He also said that the company would be funding the acquisition through internal accruals, but he noted that the acquisition price is the matter of confidentiality.

Reliance Globalcom will also be looking at joining with the BVI company, to provide broadband access in China. The company will also make a $500 million investment to acquire WiMax licences and commence operations across Asia, Europe, Latin America and Africa by 2012. In the next 2-3 years the company is going to build and acquire WiMax networks across 50 countries.

BVI-based eWave World was formed by a group of industry veterans, and it holds WiMax licenses and spectrum in several countries. The company has put down over 36,000 km of optic fibre in China that will enable it to provide broadbank services in that country.