Ambani brothers in Rs 1,200cr deal for fibre optic network
Reliance Jio Infocomm, the 4G telecom arm of Mukesh Ambani's Reliance Industries, and Anil Ambani owned Reliance Communications have struck a Rs 1,200 crore a deal for sharing the later's nationwide fibre optic network.
April 03, 2013 / 09:47 IST
Moneycontrol Bureau
Reliance Jio Infocomm, the 4G telecom arm of Mukesh Ambani's Reliance Industries, and Anil Ambani owned Reliance Communications have struck a Rs 1,200 crore deal for sharing the later's nationwide fibre optic network.Under the terms of the agreement, Reliance Jio will utilise multiple fibre pairs across RCom's 1,20,000 kms inter-city fibre optic network for rolling out its 4G services, it said on Tuesday. RCom will inturn have reciprocal access to optic fibre infrastructure to be built by Reliance Jio in the future."This agreement is the first in an intended comprehensive framework of business co-operation between Reliance Jio and Reliance Communications to provide for optimal utilisation of the existing and future infrastructure of both companies on reciprocal basis, including inter alia, inter-city fibre, intra-city fibre, towers and related assets," Reliance Communications said. The agreement also provides for joint working arrangements to be put in place immediately for upgradation of the optic fibre network, to ensure seamless delivery of next generation services.The announcement sent Reliance Communications surging near 17 percent in late afternoon trade. The stock finally closed at Rs 63.45 on NSE, up 11.2 percent. Other Anil Ambani group stocks too rallied, with Reliance Infrastructure and Reliance Capital gaining around 4-5 percent. Reliance Industries closed at Rs 793.90, up near 2 percent. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
