Reliance to soon acquire controlling stake in Hathway, DEN: Reports
Reports say that RIL is likely to own more than 25 per cent each in the two companies, giving it the ability to control developments and get a seat on the board
Reliance Industries is soon expected to buy controlling stakes in what are two of India’s largest cable TV and broadband service providers, Hathway Cable & Datacom and DEN Networks, say media reports. The move comes at a time when RIL is all set to ramp up coverage of Jio GigaFiber.
Reports say that RIL is likely to own more than 25 per cent each in the two companies, giving it the ability to control developments and get a seat on the board. The deal is expected to be announced in the next few days. Both companies have told the stock exchanges that the respective boards are meeting on October 17 to discuss and approve a proposal for raising funds.
With an aim to reach 50 million homes across 1100 cities, Reliance Jio is exploring business opportunities with several MSOs in order to launch it's Gigafiber Fiber-to-the-Home (FTTH) Service in India.
“Reliance Jio was facing problems to roll out its broadband. Since these MSOs have good reach in particular regions, it will be easier for Jio to launch and reach their target audience,” said a senior industry executive to e4m on Monday, October 15.
On July 5, at Reliance Industries Limited’s 41st AGM, Mukesh D Ambani announced the launch of Jio Giga Fiber, an ultra-high speed fixed line broadband service, for homes and enterprises with a target to reach 50mn homes across 1100 cities. Jio Giga Fibre service will offer ultra high-definition entertainment on large screen TVs, multi-party video conferencing from your living room, voice-activated virtual assistants, virtual reality gaming, digital shopping and immersive experiences.
In May 2017, Jio had begun rolling out beta trials of the FTTH service at select locations in six cities — Mumbai, Delhi-NCR, Ahmedabad, Jamnagar, Surat and Vadodara.
Reports say Hathway has over 52 per cent share of the total cable broadband market in India with 0.77 million subscribers and the ability to reach 5.5 million homes. DEN has the ability to reach 0.97 million homes and has 106,000 broadband subscribers.
Hathway Cable is owned by the Raheja Group while Sameer Manchanda owns DEN Networks.
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