Displaying items by tag: Reliance Communications
Swedish telecommunications giant Ericsson has called for the detainment of Anil Ambani, the chairman of Indian operator Reliance Communications (RCom) for its failure to pay the vendor a settlement fee of INR5.5bn ($78.5m) of unpaid service charges.
Ericsson was forced to file a second contempt of court proceeding against Reliance Communications when they failed to process the outstanding settlement charge. In addition to this, it was further disclosed that the vendor requested in the petition to the Supreme Court that the chairman of Reliance Communications should be barred from leaving the country and be detained in civil prison. It has also been reported that Ambani provided the Supreme Court with a personal guarantee.
However, RCom has also filed a case against the Department of Telecommunications (DoT) claiming that the delays in approving long-planned spectrum sales and auctions had prevented it from being able to pay Ericsson. The court will hear both cases on the 7th of January.
The former mobile operator missed the original payment deadline of 30 September, and then last month the high court rejected its plea to extend a 15 December deadline, which it had also missed. The earlier extension was granted by the court due to a delay in finalising the sale of its assets to Reliance Jio.
Twelve months ago, RCom brokered a deal with Jio to sell off assets including 800MHz spectrum to repay part of its huge debt. DoT later demanded payment of the dues as a condition for approving the agreement, but RCom is disputing the spectrum charge in court.
DoT last month rejected the spectrum deal on the grounds that it goes against trading guidelines after Jio sought assurances it won’t be held responsible for RCom’s past spectrum-related charges, which could total as much as INR29.5 billion.
Ericsson claims that Indian telecoms and media company Reliance Communications (RCom) and its subsidiaries owe it over INR11.56 billion ($180 million) and has subsequently filed a petition with the National Company Law Tribunal (NCLT) against the company, the Swedish vendor said in a statement.
Filing the claim against RCom was a “last resort” Ericsson said, to put an end to the issue. However, RCom will reportedly challenge the action. Ericsson is seeking INR4.91 billion from RCom, and further claims that its subsidiaries Reliance Telecom and towers unit Reliance Infratel owe the company INR5.35 billion and INR1.29 billion, respectively.
“Ericsson can confirm that the company has filed an insolvency petition against Reliance Communications in the National Company Law Tribunal in India,” Ericsson said in an emailed statement. “Ericsson has done this as a last resort in order to resolve an issue regarding debt that Reliance owes to Ericsson for services provided under a contract.”
The case has been adjourned by the NCLT until September 26.
Reliance Communications is under pressure due to fierce competition in the telecom sector as a result of discount provider Reliance Jio entering the market in September 2016. RCom reported a loss of INR12.2 billion for the three months ended June 2017, according to its most recent financial results. The company is now merging with operator Aircel in a bid to cut its debt pile.
India’s Reliance Communications, the Internet access and telecommunications company headquartered in Mumbai, India, is selling its mobile phone tower business to Brookfield, a Canadian asset management giant, for $1.6 billion, it was reported on December 21, 2016. The deal represents the largest investment by a foreign company in Indian infrastructure, according to Reliance. Brookfield reportedly seeks to capitalize on liquidity constraints at major Indian firms.
According to a report by Bloomberg, Indian companies are struggling to acquire capital as the central bank puts pressure on lenders to address bad loans. Firms are said to be choosing asset sales to boost coffers and reduce debt, says the report.
Reliance Communications, led by Indian billionaire tycoon Anil Ambani, said in a statement to the Bombay Stock Exchange that it was announcing the “signing of binding agreements” with Brookfield Infrastructure to sell its mobile phone towers for 110 billion rupees. In the statement the company said, “The transaction will represent the largest ever investment by any overseas financial investor in the infrastructure sector in India.”
The reason why Reliance is selling its tower business, which ties into its recent merger with Aircel, is to help reduce its overall debt by about 70 percent, according to the company. After the announcement, Reliance’s shares on the BSE’s Sensex soared by almost nine percent.
Reliance’s tower company will now become a separate company owned by Brookfield, but the Indian company says it would benefit from non-voting shares. In a statement Reliance said, "The company expects significant future value creation from these class B shares owing to the 4G rollout and the expected growth of the telecom industry.”
This refers to India’s current 4G revolution taking place, as the country’s telecoms market becomes increasingly competitive. Major players in the market include Vodafone, Idea, and Reliance Jio, which is owned by Anil Ambani’s older brother Mukesh, and also Bharti Airtel vie for dominance. According to a report by Bloomberg, Brookfield was originally in talks to take over Bharti Airtel’s wireless tower business, Bharti Infratel.
The Reserve Bank of India is currently forcing banks to clean up their balance sheets. Brookfield signed a deal with the State Bank of India earlier this year and last month its South Asia head told Bloomberg that the asset management firm had struck a $1 billion agreement with Indian commercial property firm Hiranandani Developers Pvt.
Reliance Communications (RCOM) and its subsidiary, Global Cloud Xchange (GCX), have deployed what they say is India’s first home-grown content delivery network (CDN), designed to take ‘Digital India’ from promise to fruition.
Bill Barney, CEO of RCOM (Enterprise) & GCX, said Fast Edge comprised content caches around the edge of Reliance’s Indian network, connecting back to nine Tier III+ data centers in Mumbai, Bangalore, Chennai and Hyderabad. “The content caches, in turn, are seamlessly connected onward to our network of data centers situated in key hubs along the Emerging Markets Corridor, all interconnected by our wholly-owned global subsea fiber network,” Barney said.
He added: “Open-source cache servers hosted in Reliance / GCX MPLS PoPs throughout India mean content of all types including social media, data, video and gaming, can now be served from the very same neighborhood in which the eyeballs accessing it are based.”
Braham Singh, SVP of Product Management, RCOM (Enterprise) and GCX, said: “By building Fast Edge across the length and breadth of the Reliance network, the distance for content to travel to the eyeball can be slashed from 5,000 miles [8,000kms] to 10 miles [16kms], effectively eradicating the middle mile bottleneck.”
He added: “Because the content is cached and delivered across our local network, any rapid exponential growth in the number of users concurrently accessing will not automatically lead to middle mile bandwidth issues. In other words, content can now go ‘’viral’ across India without impact on users.”
GCX notes that, according to Mary Meeker’s Global Internet Trend 2016 report, India’s Internet user growth is accelerating at more than 40 percent year over year, putting India ahead of the US as the second largest Internet user market after China.”
“With the increasing number of OTT, gaming and new media companies targeting India’s 350 million+ eyeballs, the demand for improved response time, reduced risk of malicious attacks, improved visibility of control over traffic flows and reduced risk of network capacity bottlenecks are rapidly growing,” GCX said.
“These requirements are posing challenges, especially for third party CDN providers with only infrastructure at regional hubs, far from where growth is exploding.”
Reliance Communications subsidiary Global Cloud Xchange (GCX) has formed a partnership with Cornell University’s Electrical and Computer Engineering Department to test and implement new technology for dynamic, optimal routing.
Cornell Professor Kevin Tang, head of the university’s research group who is overseeing the project, said the technology was able to reroute traffic in the event of failure in less than 100 milliseconds — fast enough for video streaming traffic to be unaffected.
Reliance Communications (Enterprise) and Global Cloud Xchange COO, Wilfred Kwan, said: “As part of our commitment to support research and higher education, we are pleased to provide Cornell with a live production environment for deploying and testing the new traffic control solutions. The environment includes the GCX Cloud X nodes and Layer 2/Layer 3 networks across multiple locations in North America, Europe, and Asia. The virtual machines at each of the cloud nodes are fully interconnected via the GCX network.”
The project is being implemented from GCX’s Cloud X platforms in Palo Alto, New York, Hong Kong and London, providing real-time network analytics that track how the new routing solutions dynamically load balance and quickly converge to the optimal traffic distribution.
The test network is configured and monitored from a cloud platform that connects to locally distributed software agents that control the forwarding plane. “Ongoing testing demonstrates some of the latest developments in SDN, including disaggregated networking with OpenFlow,” GCX said.
GCX plans to expand the pilot across a larger production network with Waltz Networks, a venture-backed startup based on the research and work at Cornell University that is using “breakthrough control schemes” to enable networks of all sizes to be self-managing. It claims that, for the first time, real-time control can be delivered seamlessly in any existing network for exponential improvements in resiliency and performance.
TI Sparkle announced that Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, has expanded its reach into TI Sparkle Sicily Hub in Palermo with a multiservice PoP, providing enhanced coverage and increased diversity options to support the customer’s business growth in the region.
With an ever growing presence of multi-breed global players, TI Sparkle’s Next Generation Data Center and open ecosystem Sicily Hub continues to attract new eyeballs, content and interconnections to international infrastructure and a complete service marketplace where service providers, content and media players and system integrators have an opportunity to grow their business.
Located closer than any other European peering point to North Africa, the Mediterranean and the Middle East, TI Sparkle SICILY HUB is served by Seabone, TI Sparkle’s Tier 1-grade Global IP Transit service, while its open and resilient configuration supports carriers and ISPs that want to enhance the redundancy of their networks.
In addition, through DE-CIX’s IX platform, Sicily Hub allows carriers that land their IP backbones in Sicily to directly interconnect with each other and to other providers that have a presence in the facility. These other providers include some of the world’s most well-known and largest content players.
“Global Cloud Xchange latest presence in our Sicily Hub with a multiservice PoP confirms how relevant Palermo is becoming as the hub of choice for any global player active in the Mediterranean, Africa and the Middle East,” says Alessandro Talotta, chairman and CEO of TI Sparkle.
“GCX has a committed and long standing history of serving customers across Europe as the region continues to be a strong market for us,” said Bill Barney, CEO, Reliance Communications (Enterprise) & Global Cloud Xchange. “The new Palermo PoP complements our existing capabilities in the region, while further enhancing our ability to meet the growing demand for high performance, low latency connectivity across Africa, the Mediterranean and the emerging markets.”
TI Sparkle Sicily Hub has been designed with the most advanced technologies and follows the most restrictive technical parameters typical of Telecom Italia Group’s Next Generation Data Centers.