Mukesh's Ambani's Reliance Jio signs 3rd telecom agreement with Anil's Reliance Communications [India Business] [Times of India]
(Times of India Via Acquire Media NewsEdge) NEW DELHI: Mukesh Ambani-led Reliance Jio Infocomm on Monday announced a third telecom pact with younger brother Anil's Reliance Communications as it gears up to launch its operations, including high-speed 4G operations.
Reliance Jio has already signed agreements to share RCom's inter-city optic fiber as well as telecom tower infrastructure, and has now extended this to share RCom's intracity optic fiber infrastructure.
The two companies announced signing of a "Master Services Agreement" for sharing the intracity optic fiber. "Under the terms of the agreement, Reliance Jio will utilise RCom's nationwide intracity fiber network for accelerated roll-out of 4G services across the country. The agreement is based on arm's length pricing at prevailing market prices," a statement from the companies said.
RCom said its intracity optic fiber network extends to nearly 500,000 fiber per kilometres, across the top more than 300 cities and towns in India.
Shares of RCom were up 4.4 per cent at the Bombay Stock Exchange even as the broader sensex ended the day near flat.
Reliance Jio holds pan-India 4G spectrum in the 2,300 MHz band and also won spectrum in the 1,800 MHz band in 14 circles during the recent auction of mobile airwaves. The company, which will mark the second foray of Mukesh in the telecom space (RCom was his debut and the company went to Anil as part of a family settlement), has been signing infrastructure-sharing agreements with various companies as it works towards launching its operations.
The company has already signed a tower deal with Bharti Airtel, a company with which it also holds a comprehensive deal for sharing telecom infrastructure.
Bharti and Reliance Jio had in December last year signed an agreement towards sharing each other's infrastructure like inter- and intracity optic fibre network; submarine cable networks; towers and internet broadband, and said the arrangement could also be extended to roaming on 2G, 3G and 4G.
In March, Reliance Jio had also signed an agreement with Viom Networks to use its telecom infrastructure of over 42,000 towers.
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