Ambani brothers join hands for telecom biz
Reliance Jio, RComm sign Rs 12 billion deal Under the pact, Reliance Industries' telecom arm will hire...
Reliance Jio, RComm sign Rs 12 billion deal Under the pact, Reliance Industries' telecom arm will hire nationwide optical fibre network of Reliance Communications for the roll-out of 4G services. New Delhi (Agencies): In what is the first business tie-up between two estranged billionaire brothers, Mukesh and Anil, on Tuesday struck a Rs 1,200-crore deal wherein Reliance Jio will use the optic fibre network owned by Reliance Communications in a bid to launch of RIL's telecom venture. Under the pact, Reliance Industries' telecom arm will hire nationwide optical fibre network of Reliance Communications for the roll-out of 4G services. "Reliance Jio Infocomm Ltd and Reliance Communications Ltd today (Tuesday) announced the signing of a definitive agreement for approximately `1,200 crore as one-time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fibre optic network infrastructure," RCom said in a statement. Under the terms of the agreement, Reliance Jio Infocomm will utilise multiple fibre pairs across RCom's 1,20,000 kilometres inter-city fibre optic network to provide the backbone for rolling out its 4G services. The agreement for fibre is the first in a "comprehensive framework of intended business co-operation" between Reliance Jio Infocomm and Reliance Communications, the companies said in separate statements. Reliance Industries is the only company to have 4G airwaves for all of India's 22 service areas, but has yet to launch services. As per the agreement, RCom will in turn have reciprocal access to optic fibre infrastructure to be built by Reliance Jio Infocomm in the future date. "The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fibre network, to ensure seamless delivery of next generation services," the statement said. This agreement is the first in an intended comprehensive framework of business co-operation between Reliance Jio Infocomm and RCom to provide for optimal utilisation of the existing and future infrastructure of both companies on reciprocal basis, including inter alia, inter-city fibre, intra-city fiber, towers and related assets. The deal with RIL is positive for debt-laden RCom, as it raises hopes for a bigger deal between the two companies to share Reliance Communications' telecom towers.
18 Aug 2019 10:59 AM GMT