Radisys Corporation, a Reliance Industries Limited-owned company is gearing up to enter the African market with a fresh telecom venture. Radisys will partner with Ghana-based Next-Gen InfraCo to offer the latter telecom infrastructure, smartphones, and applications. NGIC has the exclusive rights to offer 5G in Ghana for the next decade, with its license valid for up to 15 years. NGIC doesn't aim to serve the customers directly. Instead, the company will offer its 5G broadband services to mobile operators and internet service providers (ISPs) in Ghana.
According to a Bloomberg report, the company aims to build affordable digital services in emerging markets. Apart from Radisys, other strategic partners of NGIC include Nokia Oyj, Tech Mahindra Ltd, and Microsoft.
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Ascend Digital Solutions Ltd and K-NET, two major telecom firms in Africa have a 55% stake in NGIC. The government owns just under a 10% stake, and the remaining shares are with private investors and local mobile operators. Mobile carriers would have to spend a significant sum of money to build infrastructure for offering high-speed 5G broadband services. Understanding that, NGIC is building the infrastructure that these mobile carriers can use and offer services to customers at a lower cost.
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Harkirit Singh, executive director of NGIC said that the company plans to invest $145 million in the next three years in building infrastructure in Ghana. Reliance doesn't hold any equity in NGIC. However, as per the report, NGIC will offer Reliance equity as a part of future payment if the Indian conglomerate is ready to accept that instead of cash.
According to Singh, firstly they have to show the value that they can create before Reliance can decide to step in as an equity holder in the company.
