NEW DELHI: The Department of Telecom (DoT) has approved the spectrum sharing deal between Reliance Jio Infocomm Limited (RJIL) and Reliance Communications (RCom).
"With reference to the earlier letter dated January 18, 2016 informing sharing of spectrum in 800 MHz with Reliance Jio Infocomm Limited (RJIL), Reliance Communications Ltd has now informed BSE that Department of Telecommunications (DoT) has taken on record 800Mhz Spectrum Sharing in 7 circles of the Company and 2 circles of Reliance Telecom Limited (RTL), wholly owned subsidiary with RJIL on April 21, 2016," RCom informed BSE Ltd. (Bombay Stock Exchange).
The Company and RTL are now able to share spectrum with RJIL in 9 circles viz. Mumbai, Uttar Pradesh (E), Madhya Pradesh, Bihar, Odisha, Haryana, Himachal Pradesh, Assam and North East.
Reliance Jio Infocomm joins hands with RCom to help each other in telecom biz
On January 18, RJIL and RCom had announced the signing of Agreements for change in spectrum alotment in 800 MHz band across 9 Circles from RCcom to RJIL and for Sharing of Spectrum in 800 MHz band across 17 Circles.
Under the agreement , both companies also intend to enter into reciprocal intra circle roaming (ICR) arrangements.
Recently, Mukesh Ambani-led RJIL has launched its 4G services in India for its employees and it expected, the company will begin the commercial roll-out of the service from March-April.
“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,” the company had said.
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.
Going ahead, customers of RCom will benefit from access to RJIL’s world class 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 RCOM group, following the nationwide long term IRU agreements for inter and intra city optical fibre networks, and for sharing of telecom tower infrastructure.
June, 2013, RJIL had signed comprehensive agreement for sharing of RCom nationwide telecom tower infrastructure worth $2 billion (Rs 12,000 crore) for the lifetime.
Similarly, RJIO had also signed agreement with with Anil Ambani’s RCom to share 120,000 km optic fibre network across the country. In return Anil Ambani’s RCOM can use Reliance Jio’s optic fiber infrastructure in future.