Anil Ambani’s Reliance Communications (RCom) is set to become the country’s largest cable TV service provider after the flagship company of the Anil Dhirubhai Ambani Group (ADAG) on Thursday announced the acquisition industry leader Digicable.
The new entity will reach into 1.1 million homes.
The firm named “Reliance Digicom” will be an integration of RCom’s direct-to-home (DTH), broadband Internet and Internet-based TV operations. It will become Asia largest and the world’s fifth largest cable TV operator.
The value of the deal was not immediately announced, but corporate sources, who did not wish to be identified, the merged entity would be valued at about $1 billion million (about Rs 4,600 crore) entity.
“The Digital TV and broadband space is poised for similar explosive growth in the years ahead,” RCom chairman Anil Ambani said.
Reliance BIG TV, the DTH arm of RCOM has 2.4 million subscribers and a 12 per cent market share of the DTH industry that has about 20 million subscribers.