Mukesh Ambani-backed Reliance Jio on Tuesday signed a licence agreement with the Kolkata Municipal Corporation (KMC) – city civic body – for laying out a high-speed 4G network. Cable laying work is likely to begin in October.
According to the agreement details, Reliance Jio would lay an underground optical fibre network of around 750 km. within the city civic body’s jurisdiction.
“The licence agreement between KMC and Reliance Jio has been signed. We would earn a one-time fee from the transaction,” Atin Ghosh, Member, Mayor-In-Council (Roads), said.
According to civic officials, KMC would earn a one-time income of Rs 26 crore from the project.
Reliance Jio officials had earlier stated that the company was planning to roll out 4G services in Kolkata, Mumbai, Delhi and Jamnagar by March 2014. Reliance was investing nearly Rs 3,000 crore over a three-year period for rolling out 4G services.
Reliance Jio, sources said, is likely to get approvals for rolling out high-speed internet services across 54 towns in West Bengal.
4G offers speed faster than many home broadband connections. Users will be able to download and stream music and videos faster — a movie (of around 2-hour duration) will take a maximum of 7-8 minutes to download — compared to 2G or 3G networks. Reliance Jio has 4G licences in 22 telecom circles. Around 25-30 per cent of the infrastructure requirements will be obtained from Anil Ambani-backed Reliance Communication (R-Com).
Meanwhile, KMC is also planning to sign a similar licence agreement with Sunil Mittal-promoted Bharti Airtel for rollout of similar 4G services in Kolkata, Ghosh added.
abhishek.l@thehindu.co.in