India is a country where voice is given more importance than data communication over a cellular network. Although, this situation is changing now, but mobile broadband is limited to selected pockets in the country. On the other hand, service providers are more interested in owning bandwidth to release them under high costs which is not always affordable to people.
At a recent 4G auction, (which seems useless currently in itself has India is still not living in a 3G world) Infotel, a mobile broadband provider bought the largest share of 4G spectrum and won the bid for all 22 regions this bid was being placed. One factor that makes Infotel so much better than its competitor is that it has nationwide wireless broadband operations, possibly the largest; making it the de-facto ruler in this sector.
Others in this race, Aircel, Tikona Digital and Bharti, each got eight, four and four licenses respectively. Seeing this state, Mukesh Ambani who currently holds the Reliance Industries, is now proposing to buy Infotel for $1 billion and also agrees to pay the licensing fees. This desperate move will make Reliance Communication and Reliance Industries tough competitors in the mobile business once again.
What is expected of Reliance Industries now is that it understands the current #fail scenario and need of wireless broadband in India and tries to make it better.