Tycoon Ambani Expands Reach to Africa with Telecom Venture
Mukesh Ambani's Reliance Industries Ltd. is entering the African market with a telecom venture. Next-Gen InfraCo., based in Ghana, will provide 5G broadband services to mobile operators and internet service providers. Strategic partners include Nokia, Tech Mahindra, and Microsoft.
The venture aims to capture the growing market for mobile broadband customers on the continent. Radisys Corp., a subsidiary of Ambani's Reliance Industries Ltd., will play a crucial role by providing network infrastructure, applications, and smartphones for Next-Gen InfraCo., based in Ghana. Harkirit Singh, the Executive Director of Next-Gen InfraCo., revealed the plans ahead of the company's launch announcement in Mumbai, India's financial hub.
Next-Gen InfraCo. plans to commence operations by the end of this year, offering 5G broadband services to mobile operators and internet service providers in Ghana. Singh emphasised that the company's mission is to develop affordable digital services in emerging markets, making it an attractive proposition for customers.
NGIC has secured strategic partnerships with industry giants such as Nokia Oyj, Tech Mahindra Ltd., and Microsoft Corp. These partnerships, coupled with NGIC's possession of Ghana's only 5G license, will enable the company to build scalable broadband services. This is a significant advantage as individual mobile carriers face substantial expenses in deploying such infrastructure.
The new company is jointly owned by Ascend Digital Solutions Ltd. and K-NET, two African telecom firms, which hold a combined stake of 55%. The Ghanaian government will own just under 10% of NGIC, while local mobile operators and private investors will retain the remaining shares. Singh, who is also the CEO of Ascend, expressed confidence in NGIC's exclusive rights to offer 5G services in Ghana for a decade, with a license valid for 15 years.
NGIC's ambitions are inspired by the success of Ambani's Jio Infocomm Ltd. in India. Jio revolutionized the Indian telecom industry by providing affordable data and free voice calling, leading to the closure of some competitors and industry consolidation. With over 470 million users, Jio is currently India's largest mobile operator.
Ghana's government has set an ambitious goal of digitally connecting the entire country within the next six years. NGIC aims to replicate the success of India's low-cost mobile data revolution by offering affordable mobile broadband services and devices to the people of Ghana. Ghana's Minister for Communications and Digitalisation, Ursula Owusu-Ekuful, hailed the partnership between Reliance and NGIC as a diplomatic win for India, countering China's growing influence in Africa through digital inclusion initiatives.
While none of the strategic partners currently hold equity in NGIC, Singh revealed that they will have the option to accept part of their payments as equity in the future. The focus now is on proving the value created by NGIC before considering such arrangements.
Mukesh Ambani's Reliance Industries Ltd. is entering the African market with a telecom venture.
Next-Gen InfraCo., based in Ghana, will provide 5G broadband services to mobile operators and internet service providers.
Strategic partners include Nokia, Tech Mahindra, and Microsoft.
Source: YAHOO