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Reliance Jio inks master services pact for sharing Reliance Communications’ intra-city fibre network

07 April, 2014

Reliance Jio Infocomm Ltd, the telecommunication unit of diversified business conglomerate Reliance Industries Ltd, has entered into a master services agreement with Anil Ambani-controlled Reliance Communications Ltd (RCOM) to share the latter’s fibre infrastructure in some 300 cities and towns across the country.

The intra-city fibre network sharing deal with RCOM will help Mukesh Ambani-controlled Reliance Jio Infocomm to accelerate the roll-out of its 4G services throughout the country.

“The agreement is based on arm’s length pricing at prevailing market prices,” RCOM said in a statement.

RCOM scrip rose 4.34 per cent to end the day at Rs 134.7 a share on NSE in a flat Mumbai market on Monday.

Reliance Jio Infocomm – formerly known as Infotel Broadband Services Limited – has been signing infrastructure sharing and leasing agreements as part of its efforts to save costs.

Last year, Reliance Jio signed a lease agreement with RCOM to use the latter’s inter-city fibre for its 4G network, in the first business tie-up between the once-feuding Ambani brothers. Later in the year, again Reliance Jio inked a $2.1 billion pact for leasing Reliance Communications’ mobile phone towers.

Besides, it has also separately entered into infrastructure agreements with India’s largest cellular services provider Bharti Airtel and Bharti Infratel, which is one of the largest tower infrastructure providers in India with 35,376 towers in 11 telecom circles across India. Bharti Infratel also has 42 per cent stake in Indus Towers, which has 112,144 towers in 15 telecom circles across India.

Most recently, Reliance Jio inked a lease pact with Viom Networks to use the latter’s telecom tower infrastructure for 4G rollout.

Reliance Jio bought 4G airwaves in 2010 in an auction by the government, but is yet to launch the services.

(Edited by Joby Puthuparampil Johnson)


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Reliance Jio inks master services pact for sharing Reliance Communications’ intra-city fibre network

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