In a firstever official partnership with Reliance Communications post the re-entry of Mukesh Ambani’s entry to telecom business, Reliance Jio has partnered with Anil Ambani’s RCom to share the latter’s 1,20,000 km optic fibre network across the country.
Reliance Jio would give Rs 1200 crore as one time indefeasible right to use RCom’s 1,20,000 km optice fibre network which would help the latter in providing backhaul for its yet-to-launch 4G LTE services. In return Anil Ambani’s RCom can use Reliance Jio’s yet tobe built optic fibre infrastructure in future.
In a filing in the Bombay Stock Exchange, RCom said that the agreement provides joint working arrangement to be put in place for upgradation of the existing optic fibre network, capabale of delivering next generation services like LTE.
The statement also mentions that this is the first in “an intended comprehensive framework of business cooperation” between the two companies, which means there are more such agreements or partnersips in the pipeline.
Reliance Jio is expected to lauunch its 4G services by the end of this calendar year.