Reliance buys two cable TV service providers to deepen fibre broadband reach

Den Networks

17/10/2018 15:54

MUMBAI, Oct 17 (Reuters) - Indian oil-to-telecoms
conglomerate Reliance Industries Ltd  RELI.NS  announced on
Wednesday it will acquire controlling stakes in two local cable
TV and Internet service providers, expediting the rollout of its
new fibre broadband service.
    Reliance, controlled by India's richest man Mukesh Ambani,
said it will acquire a 51.3 percent stake in Hathway Cable and
Datacom Ltd  HAWY.NS  for 29.40 billion rupees ($399 million).
    It will also purchase new shares worth 20.45 billion rupees
and buy secondary shares for 2.45 billion rupees for a 66
percent stake in Den Networks Ltd  DENN.NS , it said in a
statement.
    Reliance disrupted India's telecoms sector when it launched
telecoms unit Jio in late 2016 with cut-price mobile data plans
and free voice calls.
    "With local cable operators now as part of the Jio
ecosystem, we look forward to bringing Jio's advanced
JioGigaFiber and Smart Home Solutions to more Indian homes, even
quicker," Ambani said in the statement.
    Reliance announced the launch of its fibre broadband service
in July, named 'JioGigaFiber', and said it would be rolled out
in 1,100 Indian cities and potentially connect 50 million
homes. urn:newsml:reuters.com:*:nL4N1U12D1
    The two transactions will close after customary regulatory
and other approvals, said Reliance, which announced a record
high quarterly profit on Wednesday.  urn:newsml:reuters.com:*:nL3N1WX483
    Reliance has been testing its broadband service in some
cities, offering what it says is faster internet connectivity
than regular broadband where the fibre reaches only up to the
building and not directly into homes.
    The conglomerate is also betting on acquiring content to
fuel data consumption in a country with more than a billion
mobile connections. It has invested in Eros  EROS.N , Indian
production house Balaji Telefilms  BLTE.NS  and music streaming
app Saavn.  urn:newsml:reuters.com:*:nL3N1R55DE


 ($1 = 73.6200 Indian rupees)

 (Reporting by Sankalp Phartiyal; Editing by Susan Fenton)
 ((sankalp.phartiyal@thomsonreuters.com; +91-22-61807186;
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