Reliance Jio Infocomm and Reliance Communications ink a definitive agreement for Rs. 1,200 crore
Reliance Jio Infocomm (owned by Mukesh Ambani) and Reliance Communications (owned by Anil Ambani) inked a definitive agreement for Rs. 1,200 crore for sharing of Rcom’s nationwide optic fiber network. 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 to have reciprocal access to fiber infrastructure built by Reliance Jio Infocomm in future.
- Inter-city fiber sharing agreement is the first in a comprehensive framework of intended business co-operation between reliance jio infocomm and reliance communications.
- Reliance Jio Infocomm will utilize multiple fiber pairs across RCOM’s 1,20,000 kilometres inter-city fiber optic network to provide a robust and future-proof backbone for rolling out its state-of-the-art 4G services.
- Reliance Communications will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.
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 Reliance Jio Infocomm to even provide mobile phone calls service using its 4G spectrum and this will provide an opportunity for Mukesh Ambani’s to re-enter into mobile phone services business in India.
Categories: Business, Economy & Banking
Tags: Current Affairs 2013