Ambani brothers join hands for telecom business
Mumbai : Companies run by brothers Mukesh and Anil Ambani Tuesday announced a Rs.1,200 crore deal for cooperation in telecom business.
As per the deal, Mukesh Ambani-led Reliance Jio Infocomm will utilise Anil Ambani-led Reliance Communications’ optical fibre network for fourth generation (4G) telecom services.
Reliance Communications in turn will have reciprocal access to optic fibre infrastructure to be built by Reliance Jio in future.
Reliance Jio is a subsidiary of Reliance Industries.
The two firms have signed a “definitive agreement” for approximately Rs.1,200 crore as a one-time indefeasible right to use fees for sharing Reliance Communications nationwide inter-city fibre optic network infrastructure, Reliance Communications said in a statement.
“This agreement is the first in an intended comprehensive framework of business cooperation between Reliance Jio Infocomm 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, towers and related assets,” the statement said.
The agreement provides for joint working agreements to be put in place immediately for upgradation of the optic fibre network to ensure seamless delivery of next generation services.
(IANS)
Worldsnap Staff Editing:
After this news, Reliance Communication and Reliance Industrial Infrastructure Limited stocks are trading in green. RCOM is trading at 66.45 up by 4.75% and RIIL trades at 405.4 with 3.87 gain.
File Photo : AFP