Technoglitch
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India's richest man, Mukesh Ambani, is muscling into the cable TV sector as part of a media and telecoms offensive that pits him against his once-estranged younger brother and threatens to shake up both industries.
Ambani controls Reliance Industries , an oil and gas behemoth that is India's most profitable conglomerate. He is also now targeting consumers, taking steps most recently into telecoms, where he has spent at least $18 billion (roughly Rs. 1,21,405 crores) on 4G telecoms brand RJio, due to launch this year.
Now, he plans to spend around $2 billion (roughly Rs. 13,489 crores) over three years to capture TV sets, two people with direct knowledge of the matter said, as he eyes an opportunity to use his financial clout in what is a highly fragmented sector.
RCom has a 140,000 km, pan-India fibre optic cable network which RJio will use under a 2014 deal, alongside its own 250,000 km network. A Reliance push into TV will also use RCom's network of towers and cables. In January, the two companies signed a deal to share RCom's 800 MHz spectrum for its 4G push.
That could provide something of a cushion, but is unlikely to ease the pressure. As Mukesh's telecom and cable projects take hold, analysts and industry executives say Reliance Industries' clout and the scale of its effort will pressure smaller rivals, including RCom.
Ambani's $20 Billion Bet on TV, Telecom May Rekindle Sibling Rivalry | NDTV Gadgets360.com
Ambani controls Reliance Industries , an oil and gas behemoth that is India's most profitable conglomerate. He is also now targeting consumers, taking steps most recently into telecoms, where he has spent at least $18 billion (roughly Rs. 1,21,405 crores) on 4G telecoms brand RJio, due to launch this year.
Now, he plans to spend around $2 billion (roughly Rs. 13,489 crores) over three years to capture TV sets, two people with direct knowledge of the matter said, as he eyes an opportunity to use his financial clout in what is a highly fragmented sector.
RCom has a 140,000 km, pan-India fibre optic cable network which RJio will use under a 2014 deal, alongside its own 250,000 km network. A Reliance push into TV will also use RCom's network of towers and cables. In January, the two companies signed a deal to share RCom's 800 MHz spectrum for its 4G push.
That could provide something of a cushion, but is unlikely to ease the pressure. As Mukesh's telecom and cable projects take hold, analysts and industry executives say Reliance Industries' clout and the scale of its effort will pressure smaller rivals, including RCom.
Ambani's $20 Billion Bet on TV, Telecom May Rekindle Sibling Rivalry | NDTV Gadgets360.com
