Anil Ambani’s Reliance communication is in talks with Aircel network operators for combing their wireless telecom services. Reliance is looking to acquire its rival mobile network operator. Currently, Reliance stands at number four by customer acquisition in India behind Airtel India, Vodafone India and Idea Cellular.
With this deal, Reliance is looking to compete against the top mobile networks provider Bharti Airtel and Vodafone in India. Currently, Aircel ranks one step behind the Reliance by customer acquisition. If both companies finalize the deal, Reliance Communications will get to seconds place by pushing Vodafone to No. 3.
According to Telecom Regulatory Authority of India (TRAI), Reliance network had 110 million users in September this year, whereas Aircel had 84 Million users. India is the second largest telecom market in the world, only behind China. Every company is trying to makes its presence even stronger in India.
Any financial details about the deal have not been disclosed as of now. Reliance is looking to acquire the Aircel, whose majority of stakes are owned by Malaysia based Maxis Communications. Recently, Reliance Communication had also agreed to buy Russian conglomerate Sistema’s Indian mobile phone business in all stocks.
Recently, Mukesh Ambani, brother of Anil Ambani has also announced the launch of 4G network, Reliance Jio. This new service will provide base for 4G networks in India. Jio has done a deal with Reliance communication to provide 4G waves. The debt burden of Aircel may cause some problem in the deal, but let’s hope for the best.