The Board of Directors of Reliance Communications Ltd has approved a proposal to acquire Digicable, India’s largest Cable TV service provider, in an all-stock deal of the new entity, subject to definitive documentation, necessary approvals etc.
The new entity named “Reliance DigiCom” is an integration of RCOM’s DTH, IPTV and Retail Broadband Operations, with Digicable. This will be India’s / Asia’s largest, and the World’s 5th largest company, to offer the full-suite of Triple Play services – Digital TV, Ultra High-Speed Broadband and Voice.
Commenting on the acquisition, Anil D. Ambani, Chairman, Reliance Communications, said: “Reliance Communications led the telecom revolution in India by growing its subscriber base to over 100 million customers in a short span of just five years.
The Digital TV and Broadband space is poised for similar explosive growth in the years ahead. With this game changing 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.
The new company, Reliance DigiCom, will fuel our ‘4-screen strategy’ to own mobile, cinema, TV and computer screens, that are rapidly becoming an integral part of our customers’ daily lives, leading to world-class convergence of information, communication and entertainment solutions and services.”
Reliance DigiCom’s Triple Play Services comprise of:
Digital TV (DTH, Cable, IPTV, HITS): Digital TV platform ready to offer double the number of channels as available on any existing platform, and a host of innovative Value Added Services
Over 500 digital quality and 100 High Definition Channels
Internet on TV
Video on Demand
Broadband: Metro Ethernet and Digital cable combination to offer internet speeds of up to 100 mbps, significantly ahead of all proven Wireless, Wimax and Broadband Wireless Access (BWA) technologies
Voice: Voice over Internet Protocol
Reliance Communications, 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 yet currently fragmented / underdeveloped TV and Broadband market in the country.