Punit Garg in Mumbai on Thursday. (PTI)

Mumbai, April 24: Anil Ambani’s Reliance Globalcom has acquired a 90 per cent stake in British WiMax player eWave World to foray into the emerging markets.

The transaction, for an undisclosed amount and to be closed in 30 days, will be funded through internal accruals.

WiMax is a telecom technology aimed at providing wireless data over long distances in a variety of ways.

Reliance will invest $500 million in the British player over the next three years to roll out WiMax services in 50 developing countries in Africa, Asia and Latin America.

“This is our biggest bet in wireless space, making us a leading WiMax operator in the emerging markets,” said Punit Garg, CEO of Reliance Globalcom.

The worldwide WiMax market will be $17 billion by 2010. Of this, the emerging markets will account for around $10 billion.

“These countries have low broadband penetration and growth potential here is great,” Garg said.

With the buyout of eWave World, Reliance will gain access to the world’s number one broadband market, China, which has 80 million subscribers.

Reliance will capitalise on eWave World’s 36,000km optic fibre cable network in China that was built in a joint venture with the Chinese government.

The UK player has licences to roll out WiMax in five countries and will soon get licences in 19 other nations.

“We see significant industrial logic in this transaction. This will enable us to outsource to India network engineering, enabling faster rollout of network,” said Jay Metcalfe, chairman and founder of eWave World.

According to Reliance officials, eWave World has a two-to-three-year head start over other WiMax players which makes the acquisition special.