5G in mobile technology is the future of internet services. BSNL has started its work in the direction. Airtel and Vodafone too are gearing up, but the market will tilt its preference to those who will offer it first and with better infrastructure.
Here comes the news that Reliance Jio has just completed the formalities to acquire a US-based leading telecom solutions provider. It will augment Jio’s 5G future services and strengthen the venture of the Internet of things (IoT).
There is a tough competition in the 5G global arena. Globally, 5G technology is growing fast, because certain countries are working on early 5G network trials and test 5G for its commercial users. The countries which are much more equipped than others are South Korea, Japan, China and USA.
The company has taken over the Radisys, in a deal which is estimated at USD 75 million, which is almost more than Rs 510 crore.
Reliance Jio will be acquiring 100 per cent equity in Radisys, it is confirmed.
The Radisys which is on Nasdaq listing will be delisted after the acquisition. Radisys Corporation and parent company of Reliance Jio– the Reliance Industries Limited, have entered into an agreement under which Reliance has consented to acquire Radisys for USD 1.72 per share. A joint statement by the two companies said that deal will be in cash transaction.
RIL will make available the funds the through its internal sources only, it is said. Reliance Jio has also said that Radisys’ team will provide the Reliance with a fast track innovation and solution development expertise globally. It will streamline and quicken the networks and platforms for 5G services.
At the same time, the tie-up will enhance the value to its esteemed customers and enterprise segments.
The acquisition will definitely make Reliance Jio better equipped to the innovations in new-age areas of 5G and Internet of Things.
Reliance Industries had already inked an agreement for providing exclusive digital music service from the archives of Saavn to its music wing– JioMusic. It will create a digital media platform which could have a global reach of over USD one billion.
Moreover, the Reliance Industries Limited has also completed the taking over process of about 73 per cent stake in an education technology provider Embibe. The company is known for artificial intelligence-based services. It will invest USD 180 million in the company up to the year 2021.
Reliance Jio had announced in December last year, a mega-deal to acquire mobile business assets. It comprises spectrum and mobile towers, besides the optical fibre network of Reliance Communication.
Jio, on the other hand, has been engaged in a tariff war with the competing companies. It is still offering free voice and rock-bottom data services in some sectors. This way, it had been able to considerably dent operators like Bharti Airtel, Vodafone and Idea Cellular whose revenue have gone bottom low.
The Radisys acquisition is hoped to bolster the technology and telecom offerings by Jio. Radisys is situated at Hillsboro, Oregon in the USA. The company has a workforce of about 600 employees. It also owns an engineering team in Bengaluru with sales and support offices in every region of the world.