Ambani brothers join hands for telecom biz

ambani396NEW DELHI: Billionaire Ambani brothers have struck a Rs 1,200-crore deal wherein Mukesh will use his younger sibling’s optic fiber network for launch of his telecom venture.
Under the pact, Mukesh Ambani-led Reliance Industries’ telecom arm will hire nationwide optical fiber network of Reliance Communications for the roll-out of 4G services.
“Reliance Jio Infocomm Ltd and Reliance Communications Ltd announce the signing of a definitive agreement for approximately Rs 1,200 crore as one-time indefeasible right to use (IRU) fees for sharing RCom’s nationwide inter-city fiber optic network infrastructure,” RCom said in a statement.
Under the terms of the agreement, Reliance Jio Infocomm will utilize multiple fiber pairs across RCom’s 1,20,000 kilometers inter-city fiber optic network to provide the backbone for rolling out its 4G services.
As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.
“The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber 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 utilization of the existing and future infrastructure of both companies on reciprocal basis, including inter alia, inter-city fiber, intra-city fiber, towers and related assets. .
Reliance Jio Infocomm (RJI), formerly Infotel Broadband, won 4G spectrum for pan-India services in 2010, but the company is yet to launch its services.
Government recently approved norms that would allow RJI to even provide mobile phone calls service using its 4G spectrum. This leaves room for Mukesh Ambani’s re-entry into mobile phone services business after 2005 following Anil Ambani moving out with RCom, formerly Reliance Infocomm, Reliance Energy and Reliance Capital.-PTI