The once warring Ambani brothers are back together, officially. Mukesh Ambani backed Reliance Jio Infocomm Ltd (RJIL) has announced that it will buy spectrum from Reliance Communications Ltd (RCom) in the 800 MHz band across 9 circles through spectrum trading deal.
In addition, the two companies will share spectrum in 800 MHz band across 17 circles. Financial details of the transaction was not disclosed.
As part of the strategic collaboration, both companies also intend to enter into reciprocal Intra Circle Roaming (ICR) arrangements. This means that the two operators are practically gearing up to function as a single entity as far as infrastructure and spectrum are concerned.
RJIL and RCom already have tower sharing and optical fibre sharing deals in place. The spectrum trading and sharing deal completes the integration between the two companies which started two years ago.
Access to enhanced spectrum footprint in the 800 MHz band will complement RJIL’s best in-class LTE services rollout, providing increased network coverage and superior service quality, it added.
The spectrum arrangements between RJIL 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.
Customers of RCom will benefit from access to RJIL’s 4G network under the reciprocal sharing and ICR agreements. The arrangements are subject to liberalisation of RCom spectrum in the 800 MHz band and obtaining requisite approvals.
DoT has already asked RCom to pay over Rs 5,600 crore for liberalisation of airwaves. This will allow RCom and RJIL to use the 800 Mhz for offering data services in addition to voice telephony.
"These agreements further strengthen the comprehensive framework of business cooperation between RJIL and RCom group, following the nationwide long-term IRU agreements for inter and intra city optical fibre networks, and for sharing of telecom tower infrastructure," said a press statement.