Mukesh Ambani

SVK

svknet.wordpress.com
[OP]
Regulars
Jan 19, 2007
9,848
845
svknet.wordpress.com
Mukesh Ambani plans telecom re-entry - ft.com
Billionaire industrialist Mukesh Ambani's Reliance Industries is preparing to bid in India's forthcoming mobile auctions, with potentially far-reaching consequences for the country's battered USD 32 billion telecoms market, according to people familiar with the group.

The move would intensify competition in an already cut-throat sector and set India's richest man on a long-term collision course with the country's two leading mobile operators, Bharti Airtel and Vodafone.
...
Close observers of the elder Mr Ambani say his auction plans carries wider significance, with roots in the break-up of the business empire which his late father Dhirubhai Ambani built from scratch to become India's largest listed company.

"Telecoms has always been Mukesh's baby, it was tough for him to give it up," says one senior Indian business figure, who did not want to be named. "And if they get in they will want to be the dominant player ... In the long term they don't get into businesses where they don't dominate."

Those familiar with Mr Ambani's thinking say his auction preparations are part of plans to augment his 4G proposals with a more traditional "voice" product, a strategy analysts say is more likely to succeed than a data-only offering.

"Reliance will make a big bang entry when they come out with 4G," says one senior telecoms analyst, who did not want to be named. "If they enter the auctions it will sound very clear warning bells to their competitors that change is afoot, because the landscape becomes much, much more competitive in the long term."
 

ashish

Addicts
Regulars
Jul 21, 2011
4,267
614
Mumbai
True. He is taking so long just for 4g/lte, i don't think he will re-enter into telecom business again when already all telecom firms are bleeding financially with massive debts
 


Sushubh

Administrator
Oct 29, 2004
413,823
12,769
Gurugram
he needs voice to complement his data services. data market alone is not big enough. though voip is an alternative. he would need to get the voice licenses to ensure that users can use his lte services on mobile devices. otherwise it would remain restricted to dongles and routers alone.
 

Sushubh

Administrator
Oct 29, 2004
413,823
12,769
Gurugram
the non-compete agreement was dissolved long time ago. they can compete in any market now.
 


Sushubh

Administrator
Oct 29, 2004
413,823
12,769
Gurugram
looking at the larger picture, it was just a strategy to split the business without devaluing the two divisions.