Indian mobile network operator Reliance Communications (RCom) has agreed to acquire cable television distribution firm Digicable in an all-stock deal, the companies announced July 6.
    RCom will merge its retail broadband, IPTV and satellite DTH services with Digicable. The combined entity, worth approximately $1 billion, will be renamed Reliance DigiCom and hold a subscriber base of about 11 million homes.   The newly formed company will then roll out a broadcast offering with more than 500 digital and 100 HDTV channels, IPTV, video-on-demand and gaming services. Following the purchase, RCom’s majority owner Reliance Anil Dhirubhai Ambani Group will spin off its DTH division, Reliance Big TV, into Reliance DigiCom.
    “With this game-changing move, we hope to lead the next revolution in digital home entertainment in India. Part of RCom’s plans for the new company include upgrading Digicable’s infrastructure to offer cable-based broadband Internet access,” RCom Chairman Anil Ambani said in a statement.
    RCom will hold a 60 percent interest in the new entity. Ashmore, a private equity fund, will own the remaining shares.