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RCom, Reliance Jio in Rs 120 bln tower-sharing deal

Ambani brothers lead the growing trend towards sharing telecom infrastructure

Mukesh Ambani-controlled Reliance Jio Infocomm has signed a Rs 120 billion tower sharing deal with Anil Ambani-controlled Reliance Communications (RCom).

"Under the terms of the agreement, Reliance Jio Infocomm will utilise upto 45,000 ground and rooftop based towers across RCom's nationwide network for accelerated roll-out of its state-of-the-art 4G services", Reliance Communications said in a statement.

The agreement provides for joint working arrangements to configure the scope of additional towers to be built at new locations to ensure deep penetration and seamless delivery of next generation services.

This agreement follows the Rs 12 billion inter-city optic-fiber sharing agreement signed by the two companies in April.

Reliance Jio Infocomm is the only company to win pan-India spectrum for 4G services, but is yet to start commercial services.The company has so far invested about Rs 18,000 crore in the telecom business, mostly for acquiring spectrum.

Mukesh Ambani said at the AGM of Reliance Jio's controlling company Reliance Industries "we have charted an ambitious plan for the next 12 months and we foresee making rapid progress over this period towards launching our services across India we have made significant strides in the past year towards engineering and testing a world-class broadband network, and developing a suite of compelling and synergistic digital services"

The telecom arm will increase its staff strength by nearly three-fold in 2013-14 to 10,000 as it gears up to launch 4G services.

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