‘Estranged’ Ambani bros in spectrum sharing pact

Billionaire Mukesh Ambani-led Reliance Jio on Monday signed strategic partnership agreement with younger sibling Anil's Reliance Communications to share spectrum for providing high-speed telecom services. "Reliance Jio Infocomm Ltd and Reliance Communications on Monday announced the signing of pacts for change in spectrum allotment in 800 MHz band across 9 Circles from RCom to RJIL, and for sharing of spectrum in 800 MHz band across 17 circles," the two firms announced.

"As part of the enhanced strategic collaboration, both companies also intend to enter into reciprocal Intra Circle Roaming arrangements," they said. RCom said access to enhanced spectrum footprint in the 800 MHz band "will complement RJIL's LTE services rollout, providing increased network coverage and superior service quality".

The spectrum arrangements between RJIL and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capex efficiencies, it added. Both operators anticipate considerable savings in operating costs and future investment in Rcom's customers will benefit from access to Reliance Jio's world class nationwide 4G LTE 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.

These agreements further strengthen the comprehensive framework of business co-operation between RJIL and RCcom Group, following the nationwide long term IRU agreements for inter and intra city optical fibre networks, and for sharing of telecom tower infrastructure, the company said. The source said that in phase 1, spectrum in 17 circles will be shared as RCom is awaiting 800 MHz spectrum liberalisation demand letter from DoT in 4 circles where there is no market price benchmark (Rajasthan, Kerala, Karnataka and Tamil Nadu) and in J&K, there are some technical issues that are being sorted out.

"Reliance Jio Infocomm Ltd and Reliance Communications today announced the signing of agreements for change in spectrum allotment in 800 MHz band across 9 Circles from RCom to RJIL, and for sharing of spectrum in 800 MHz band across 17 circles," the two firms said. The spectrum arrangements between Reliance Jio and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capex efficiencies, they added.

Both operators anticipate considerable savings in operating costs and future investment in RCom's customers will benefit from access to Reliance Jio's nationwide 4G LTE 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.