Indian telecom network operators Reliance Jio Infocomm and Reliance Communications signed spectrum sharing agreement.
Agreements are for changing in spectrum allotment in 800 MHz band across 9 circles from Reliance Communications to Reliance Jio and for sharing of spectrum in 800 MHz band across 17 telecom circles in India. There will be intra circle roaming arrangements between the two.
Additional access in the 800 MHz spectrum will assist Reliance Jio to enhance coverage and quality of its LTE services. Reliance Jio is planning to launch 4G services for commercial purposes in the next 2-3 months. It aims at adding 100 million 4G customers during 2016-17. Reliance Jio competes with Bharti Airtel, Idea Cellular and Vodafone India in the 4G space.
Reliance Jio is promoted by Mukesh Ambani and Reliance Communications is promoted by brother Anil Ambani.
Reliance Jio aims to benefit from telecom network synergies, enhanced network capacity, spectrum utilization and Capex efficiencies. “Both operators anticipate considerable savings in operating costs and future investment in networks,” said Reliance Jio in a statement.
Customers of Reliance Communications will benefit from Reliance LTE network under the sharing and ICR agreements.
The Mumbai-based Reliance Communications has already sought the approval of the Department of Telecommunications (DoT) to liberalize spectrum in the 800 MHz band.