Telecom to be a part of Infocomm

Reliance Telecom (RTL), the GSM-based cellular service operator of Reliance, would be a part of the group's telecom and Internet arm, Reliance Infocomm (RIC). RIC chief operating officer (wireless) Kamal Nanavati is "returning back" to Reliance Industries.

"Reliance Telecom, which offers cellular services in seven telecom circles in 10 states, would be made a part of Reliance Infocomm," Anil Ambani said after announcing a new name for his group, Anil Dhirubhai Ambani Enterprises (ADAE).

Reliance Telecom has over 1.25 million subscribers while that of Reliance Infocomm is around 11.52 million.

Reliance Telecom and Reliance Infocomm are in the same business even though both use different technologies to offer services. "The technology doesn't matter as we are moving to an era of convergence," he added.

RTL was recently involved in a controversy after the company had laid optical fibre cables in Madhav National Park in Madhya Pradesh. The Supreme Court had a issued notice to RTL, stating that the company had not sourgt requisite permissions.

Ambani said Kamal Nanavati, who is heading Reliance Infocomm as its chief operating officer, "would be going back to Reliance Industries".

Nanavati, who is also looking after certain textiles business of the group, was brought to RIC to bring in the "Reliance group" culture. He was known to be closer to elder brother Mukesh Ambani.

Meanwhile, according to industry sources, Sanjay Mashruwala, group president (projects) of RIC, was also slated to move over to the parent company. RIC had already appointed Mckinsey & Co to scout for a chief executive officer including expatriates.