Anil Ambani-led Reliance Communications (RCom) has agreed to trade airwaves in 800 MHz band in nine service areas with his elder brother Mukesh Ambani’s Reliance Industries 4G venture Jio Infocomm.
Anil Ambani-led Reliance Communications (RCom) has agreed to trade airwaves in 800 MHz band in nine service areas with his elder brother Mukesh Ambani’s Reliance Industries 4G venture Jio Infocomm.
RCom will also share its spectrum in the 800 megahertz band with Reliance Jio Infocomm in 17 service areas. Both companies also intend to enter into reciprocal intra circle roaming arrangements.
RCom may get around Rs 4,500 crore by trading its radiowaves to Reliance Jio. These it will used to pay most of the Rs 5,384 crore spectrum liberalisation fee to the department of telecom for 16 circles by January 22.
Access to enhanced spectrum footprint in the 800 MHz band will complement Jio LTE services rollout, providing an increased network coverage and a better service quality. RJio holds 2300 Mhz spectrum in all 22 circles which it acquired in 2010. It added 1,800 Mhz in 18 circles and 800 Mhz in 10 circles.
“The spectrum arrangements between RJio and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capex efficiencies. Both operators anticipate considerable savings in operating costs and future investment in networks,” said a statement.
The company said that RCom’s customers will benefit from access to Reliance Jio’s nationwide 4G LTE network under the reciprocal sharing and ICR (intra circle roaming) agreements.
The arrangements are subject to liberalisation of RCom spectrum in the 800 MHz band and obtaining requisite approvals.
