Smart Move by Reliance: selling 20-26% stake to foreigh partner

Reliance Communications is set to sell up to 26% stake to foreign partner, says ET report. Report also says that this money will be utilized for auctions for 3G spectrum allocations. Reliance communications is India's second largest telecom operator by number of subscribers.

I would say that this is smart move by reliance. Reliance is the only operator which doesn't have any foreign partner. Also, with strong optical fibre backbone network and presence across the country makes it capable of distributing 3G services easily and efficiently. RCom would be utilizing these money for 3G auctions. Also, by collaborating with foreign partner, they will gain access to knowledge asset of their foreign counter part and develop skills necessary for 3G implementation. So, local reach and global expertise will result in to efficient 3G distribution for Reliance. Apart from this, they will get some cash in hand to bid for 3G spectrum.

I would say, this is right choice at right time. Perfectly targeted strategy - something to learn for business strategy makers.

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