Ambani brothers sign second deal worth Rs.12,000 cr

Reliance Jio Infocomm Ltd and Reliance Communications (RCOM) Ltd have signed a Rs.12,000 crore deal. The second deal between Ambani brothers in as many months will see Mukesh Ambani using towers owned by younger brother Anil Ambani’s firm Reliance Communications for launch of his telecom venture.

Under the terms of the agreement, Reliance Jio Infocomm will utilise upto 45,000 ground and rooftop based towers across RCOM’s nationwide network for accelerated roll-out of its 4G services.

This agreement comes right after the two companies had signed an agreement worth Rs.1,200 crore, ending an eight-year-long bitter feud. In April 2013, the deal was signed for sharing RCOM’s nationwide inter-city fibre optic network infrastructure. Under the deal, Reliance Jio Infocomm will utilise multiple fiber pairs across RCOM’s 1,20,000 kilometres inter-city fibre optic network for the launch its 4G services.

“The agreement provides for joint working arrangements to configure the scope of additional towers to be built at new locations to ensure deep penetration and seamless delivery of next generation services,” Reliance Industries said.