• Matchmaker businesses

    Multisided platforms can create huge value for society and fortunes for entrepreneurs, says Ian Mann.

  • Future imperfect

    A lack of compassion with ordinary people is crucial to SA’s failures, says Mandi Smallhorne.

  • Will Gordhan be fired?

    An economist ponders the top question concerning those who control international capital flows.

All data is delayed
See More

Ambani brothers sign India telecoms deal

Jun 07 2013 19:31
Mumbai - India's billionaire Ambani brothers announced a $2.1bn deal on Friday to share telecom tower infrastructure, cementing a reconciliation between the once-warring siblings.

The agreement is another tangible sign that the two are patching up relations since their bitter fight for control of Reliance erupted after their rags-to-riches father, Dhirubhai, died without leaving a will in 2002.

Reliance Jio Infocomm, the telecom unit of Mukesh Ambani-led Reliance Industries, signed the agreement with Reliance Communications, the flagship firm of the Anil Ambani group, to share the latter's telecom tower equipment, a joint statement said.

The move will help Reliance Industries to accelerate the roll-out of its long-awaited high-speed fourth generation (4G) telecom services, the companies said.

The aggregate value of the deal is more than $2.1bn for the duration of the agreement, which was not specified, the statement added.

"Under the terms of the agreement, Reliance Jio Infocomm will utilise up to 45 000 ground- and rooftop-based towers across RCom's nationwide network for accelerated roll-out of its state-of-the-art 4G services," the firms said.

Two firms signed a $220m deal in April to share their fibre-optic communications networks.

The latest agreement also allows the two companies to jointly build more towers at new locations, they said.

Reliance rose 0.55% while RCom was down 1.1% at 116.75 rupees, after a sharp recent rally on Friday.

india  |  telecommunications



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you use all your downloaded apps on your smartphone?

Previous results · Suggest a vote