Ahead of the launch of its 4G services, Reliance Jio Infocomm, a unit of Reliance Industries, has entered into a tower sharing deal with GTL Infrastructure.
Financial details of the transaction were not disclosed.
“Our mission is to launch a pan India next-generation voice and data services. We will build the same through a judicious combination of own, build and rented infrastructure. This agreement with GTL Infra is not only a step in that direction but will also help us accelerate our roll out,” said Sanjay Mashruwala, Managing Director, Reliance Jio Infocomm, in a press statement.
GTL Infra, together with Chennai Network Infrastructure Ltd (CNIL), has a portfolio of over 27,800 towers in 22 circles, the companies said.
Reliance Jio has signed multiple tower-sharing agreements with Bharti Infratel, Reliance Infratel, Viom Networks, Tower Vision and ATC India Tower Corp.
According to a recent report by investment bank Credit Suisse, Reliance Jio will start full-fledged voice and data services by March 15, 2015. The company had acquired broadband wireless access spectrum in 2010.
Charudatta Naik, Group CEO, Global Group, GTL Infra, said: “The launch of 4G networks and the rise in the consumption of data services is a growth driver for tower companies, and we at GTL Infra are geared up to capture the opportunity. Our portfolio will play an important role in rolling out broadband networks especially in regions such as North East, and South.”
The stock of GTL Infra closed on the NSE at ₹2.95, up 3.51 per cent, while that of RIL gained 1.55 per cent at ₹1,004.