Reliance Industries Chairman Mukesh Ambani announced that the company will be paying $1 billion to acquire 95% of Infotel Broadband Services Pvt. Ltd. Infotel just won the rights to high-value radio spectrum in a government auction.
Interestingly enough, Mukesh’s younger brother and rival Anil Ambani runs Reliance Communications Ltd., the second largest carrier. Due to a family noncompete agreement, Mukesh was banned from entering the telecom sector. However Mukesh and Anil scrapped that agreement last month.
Infotel is the only company that bought a pan-India license for a 4G spectrum in the government auction. The government auction of wireless airwaves helped raise $8.23 billion. Some of the winners in that auction include Infotel, who agreed to pay $2.74 billion for nationwide bandwidth and Qualcomm, who will spend $1 billion for airwaves in four regions. Bharti will spend $720 million and Aircel Ltd. agreed to pay $747 million in 8 areas.