Reliance Jio Stake in DEN Networks Increases by 12%, Telco to Rollout FTTH Service By Last Mile Connectivity

Previously, Mukesh Ambani led telecom operator had acquired a 66% stake in the company

Highlights
  • Reliance Jio will be helped by DEN Networks, Hathway Cable and Datacom in establishing last mile connectivity
  • The 66% stake in DEN Networks was bought for Rs 2290 crore by RIL

Back in January, Reliance Jio Infocomm and its subsidiaries had applied for clearance from the Competition Commission of India (CCI) for buying a significant stake in the two cable and broadband companies – DEN Networks and Hathway Cable and Datacom which was granted to the telecom operator. The parent company of Reliance Jio filed the clearance, Reliance Industries Limited acquired 66% stake in DEN Networks for Rs 2290 crore and 51.3% stake for Rs 2,940 crore in Hathway Cable and Datacom, and along with that, RIL had also claimed a small stake in GTPL Hathway. Now, news has surfaced revealing that RIL has increased its stake in DEN Networks thus giving it more control in the company.

Reliance Industries Limited Increases Stake in DEN Networks

As per the disclosures of SEBI Regulations for Substantial Acquisitions of Shares and Takeovers (SAST), three Reliance Jio companies have issued information to the stock exchanges that they have increased their holdings in Indian multi-system operator (MSO) Den Networks from 66.57% to 78.62%, meaning that the telco has increased its stake by 12.05% which translates to roughly 5.75 crore shares.

It is worth noting that while Reliance Jio has been teasing the launch of its service, Reliance Jio GigaFiber and JioTV for quite some time, the telco had been facing hurdles in the last mile connectivity for FTTH. However, to resolve these issues, Reliance Jio bought stakes in cable companies in one sweep which included big names in the industry like DEN Networks and Hathway Cable and Datacom. With these companies under its banner, now Reliance Jio will be able to delve its hands into last mile connectivity for its subsidiaries.

Reliance Jio’s Investment in Cable Companies to be Done Using SPVs

The investment in these companies will be made by six Special Purpose Vehicles (SPVs) which will be owned and controlled by Digital Media Distribution Trust of which Reliance Content Distribution Limited, a wholly-owned subsidiary of RIL, is the sole beneficiary. The Mukesh Ambani led telecom operator in its Annual General Meeting of 2018 had announced that Reliance Jio GigaFiber would be rolled out to 1,100 cities in India based on the interest received from each town. During its Q3 filings, the telco had said that it had seen an immense response from the consumers during the registration phase of its FTTH service.

It had also announced that the services which will be rolled out under the GigaFiber banner would be Home broadband, Entertainment, Smart Home Solutions, Wireline, and Enterprise. Last we heard, Reliance Jio was rolling out the service to consumers on a priority basis while expanding the service area slowly.

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Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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Nikhil Mumbai-PuneChetanArenaRaviChetan Recent comment authors
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Ktk_circle
Ktk_circle

Off topic :what will happen to the employees of MTNL and BSNL if they will close

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Doesn’t matter now.

Arena
Arena

Government will pay some amount like 3-6-12 months service bonus+ voluntary retirement benefits. That is the max they can do. Also BSNL won’t be closed, only employees will be terminated, they try to keep 5-10% from existing 55% and maintain network and lease their existing infra to other possible business entities for profitable revenues. BSNL is loosing bcz they lost user base and more than 55% revenue goes for salaries. Technology upgrades done in the past 10 years is almost zero. Just now they started fiber connections to limited users.

Kunal
Kunal

Off topic – jio has now 263775 towers in rural India covering 485297 villages. It has a tower in every second village of India. Airtel is next with 96032 rural towers . Interesting part is Airtel has more rural coverage then Jio at 510362 villages. The highest among all operators. Voda /idea combine has coverage in 471693 village’s & BSNL has coverage in around 410000 villages. Voda/idea has some 95000 odd rural towers & BSNL has 43000 rural towers. This is as per data informed by the government in parliament in the last week of February 2019. Even though Jio… Read more »

Chetan-Bengaluru
Chetan-Bengaluru

IMPORTANT POINT TO NOTE:::: Jio has pure 4G coverage. Rest all will be mix of 4G, 2g and 3G coverage. Now let’s get into technicality…. A band like 5 or 8 when deployed in 4G gives less coverage compared to when it’s deployed in 2g or 3g. Reason is signal quality. 4G spears are quality sensitive if signal noise or power is very high then quality goes down. Hence low speed. Airtel too is not able to provide same coverage on band 8 compared to when it was using it for 2g from same tower. So it is futile to… Read more »

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

The range of the signals is the same, the radio waves don’t care what they are being used for. However, the usable range of the signals are different. GSM requires a stronger signal than LTE in order to function, so the usable range of LTE for the same frequency is further. This is because as time has progressed, the signals used for the transmission of data have become more developed, for example they have improved error protection capabilities, and the transmitter/receiver have benefited from further technological advantages such as better/more antennas, improved hardware. 2G needs an RSSI power level of… Read more »

Chetan
Chetan

I am wondering should I really reply to you poor soul….. signal power is kept low in order to prevent it from noise and other distortion. Hence you won’t get same coverage as compared to 2g. I have never said 4g signal is different material compare to 2g signal…2g is pure analog signal which even prone to high noise will not distort voice capacity but 4g signal would be in terms of data quality…

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Chetan stop posting nonsense and keep using Jio.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Chetan stop putting nonsense stuff.

Bharat Khanna
Bharat Khanna

?

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Also talk this whenever Avoid gets 4G/2G only. Till the you or Ambani shoulf not talk about this.

Utter nonsense.

Arena
Arena

Lol…logic sucks. Range will be same, speed depends on signal quality, operational b.w, load on network. Interference distrub signal irrespective of technology.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

That’s what I written right.

Chetan
Chetan

@Arena, Higher the power more is the signal noise. Read text books if you don’t get right answer on Google. Google does what is best that is Google … So power is kept optimum to insure low signal to noise ratio(SINR)… Hence signal strength goes down . Yes signal strength also goes down with increase in user count. I had read this 15 yrs back in my comm engineering books. So Google can’t change it now.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Lol

Ravi
Ravi

Guys , if you think you are right in your views, upload screen shots, link or anything that prove your opinion.. we Readers want to know the truth based on evidence,, so do not argue here, every body has right to express their views with evidence…

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

No need to prove anything to you.

Arena
Arena

I don’t know what u studied. Irrespective of 2g or 4g, a X frequency signal don’t change its wave propagation qualities. SNR is secondary, noise is bcz of interference irrespective of how much power u give. As per government norms telecos power cells. Signal strength goes down bcz of obstacles, temperature, earth surface, user base, other external factors. So adding all these higher the power higher will be the noise. Noise is not something bcz of higher power. Why u talk irrelevant stuff like digital-analog- SNR.

Chetan
Chetan

Then you dont know what you are talking @Arena..

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

As expected trash reply.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

I guess only on this earth you know how things work.

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