Indian telecom network operator Reliance Communications will associate with Reliance Jio Infocomm to offer each other’s mobile subscribers access to 2G, 3G and 4G data and voice services.
Reliance Communications is promoted by Anil Ambani, while Reliance Jio Infocomm is managed by elder brother Mukesh Ambani.
HIGHLIGHTS
# Reliance Communications, Reliance Jio to trade and share 4G spectrum
# Reliance Communications to launch 4G using Reliance Jio infrastructure
# Reliance Jio will use Reliance Comm’s 2G and 3G networks
# Reliance Communications, Reliance Jio to reduce Capex
Anil Ambani, addressing the company’s shareholders, said talks were at advanced stages for acquiring the India operations of Sistema Shyam TeleServices.
Reliance Communications is also looking at hiving off the passive infrastructure of telecom towers into a separate company.
Anil Ambani said the recent decisions on spectrum sharing and trading will be an enabler in improving telecom coverage, the quality of service (QoS) and monetisation of investments.
He said the strategic partnership between his telecom arm and Reliance Jio will be a “game-changer” and extend to the next level of co-operation, as talks were in advanced stages for finalising a nationwide trading and sharing arrangements in the 800MHz-850 MHz band, IANS reported.
Reciprocal pacts will be reached on roaming, he said. This strategic cooperation and partnership between Reliance Jio and Reliance Communications is a virtual consolidation in the telecom sector.
Reliance Communications, as per a recent Citi Research report, has 9 percent of the cumulative spectrum allotted till date and will create space for Reliance Jio in the 800 MHz band in all major circles and cities.
In 2013, Reliance Jio had entered into an agreement with Reliance Communications for sharing its extensive inter-city and intra-city infrastructure of nearly 520,000 km of optic fiber pairs, besides 45,000 towers. The aggregate value of the deal was pegged at Rs 12,000 crore.
“We expect to sign and announce the tower business transaction within the next month or two,” said Anil Ambani.
The proposed deal with Sistema will extend the validity of spectrum in the 850 MHz band in eight key circles by 12 years — all the way up to 2033.
