GigaOM: Flag Telecom, a large international network operator that connected countries in Europe with Middle East and Asia with the U.S., is shelving its $1 billion dollar initial public offering. The cancellation is a huge set-back for its parent company, Reliance Communications, which has been desperately trying to reduce its $7 billion in debt. The IPO was seen as a way to quickly slash that debt. Reliance was looking to list Flag Telecom via Singapore-based business trust, Global Telecom Infrastructure Trust (GTIT) on the Singapore stock exchange.
Taking Jio's offer a step further, Mukesh Ambani, announced the 'Jio Happy New Year' offer for its new and existing customers extending the current plans up to March 31, 2017.
Reliance Communications and Aircel will hold 50% stake each in the new combined entity, which will be listed later. Both companies will also transfer debt of Rs 14,000 crore each. As for the net worth of the new company, it’ll be around Rs 35,000 crore.
Something is wrong with this post, link submission of Time of India opening page on gadgetsnow.com
Addressing the company’s 42th annual general meeting in Mumbai for an hour, Mr. Ambani said the 4G network of Reliance Jio would cover 90 per cent of India's 1.25 billion population by March 2017 and would eventually cover 18,000 cities and 200,000 villages.
This is insanity. How the hell do they plan on earning any profits with such cheap prices.
Its massive, but it STILL has a parent company. Haha.