Speaking to CNBC-TV18 he said, the joint venture will usher in a new era for the telecom industry on greater access across markets and increased services on offer.
Below is an edited transcript of the reaction on CNBC-TV18
Q: What is your opinion on the Rs 1,200-crore deal between Mukesh Ambani-owned Reliance Industries and Anil Ambani-owned Reliance Communications for the roll-out of 4G services?
A: Though it is positive in the long term, it is even more important from a shorter-term perspective as the cellular-tower infrastructure combined with the 1,20,000-km of optical fibre cable will enable the joint venture, Reliance Jio to launch fairly quickly.
In the long term, the combined spectrum will be the largest in the country and offer a host of services depending on how the network is shared, the kind of agreements to share the infrastructure are inked and the more importantly the leverage of the customer-base.
Q: Telecom analysts have opined that the deal does not necessarily mean that a majority of Reliance Communications' customer-base will subscribe to broadband services. Do you see synergies going ahead?
A: I do see synergies going ahead because the strategy is to offer broadband to the masses. At some point Reliance Communications' subscriber-base will access broadband. I think that is inevitable.
Q: What does this mean for the 4G segment now?
A: It means greater access, the start of a whole new era of growth for telecom and the availability of a host of commercial and business applications. The deal will result in deeper penetration in both rural and urban markets. What emerges as positive is that the telecom industry will witness considerable growth from the launch of 4G services.
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