Mukesh Ambani-led Reliance Jio Infocomm has signed an agreement with younger brother Anil Ambani-controlled Reliance Communications (RCom) for sharing the latter’s extensive intra-city optic fibre infrastructure. Under the terms of the agreement, Reliance Jio Infocomm will utilise RCom’s nationwide intra-city fibre network for accelerated roll-out of its state-of-the-art 4G services across the country, both the companies said in a statement. The agreement is based on arm’s length pricing at prevailing market prices, the statement added.

According to industry officials, the deal size could be Rs.5,000 crore at the rate of Rs.1 lakh per km for 15 years.

RCom’s intra-city optic fibre network extends to nearly 500,000 fibre pair kilometres, across more than 300 cities and towns in India.

This is the third agreement between the two companies following the Rs.1,200 crore inter-city optic fibre sharing agreement signed in April 2013, and the Rs.12,000 crore nationwide telecom towers infrastructure sharing agreement signed in August 2013.

Reliance Jio Infocomm has also signed network infrastructure sharing agreement with Bharti Airtel to expedite the launch of its services and to save cost.

Reliance Jio Infocomm, a subsidiary of Reliance Industries, is setting up a pan-India telecom network to provide fourth generation high-speed internet connectivity, communication services and various digital services on pan India basis. The launch date is yet to be announced.

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