Jio and RCOM ink third infrastructure deal

8 Apr 2014

4G startup Reliance Jio Infocomm has signed a third deal to lease fibre-optic cable from Reliance Communications (RCOM), the Economic Times writes. The deal will aid the rollout of Jio’s 4G network, whilst helping reduce RCOM’s substantial debt. The agreement covers fibre networks within cities and the price of the leases will be determined by the prevailing market price when Jio begins using the network. Jio is backed by petrochemical giant Reliance Industries Ltd (RIL), owned by Mukesh Ambani, whilst RCOM belongs to the telecoms empire of his brother, Anil Ambani. Previously, the two firms have signed deals for Jio to access RCOM’s long-distance fibre infrastructure, as well as the latter’s towers. Potential future pacts being explored by the duo include shared retail outlets, data centres, customer care and distribution network, an unnamed source familiar with the matter was quoted as saying.



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