Mukesh Ambani's Reliance Jio Infocomm, Anil's Reliance Com sign another deal

Mumbai | Updated: Apr 7 2014, 23:18pm hrs
Anil ambaniThe agreement is based on arm?s length pricing at prevailing market prices, the company said in a statement. (Reuters)
Billionaire Mukesh Ambani owned-Reliance Jio Infocomm has singed a agreement with brother Anil's Reliance Communications Ltd for sharing the latter's intra-city optic fiber infrastructure in over 300 towns and cities, extending to nearly 500,000 fiber pair kilometers, across the country, Reliance Jo said in a statement on Monday.

"Under the terms of the agreement, Reliance Jio Infocomm will utilize Reliance Communications nationwide intra-city fiber network for accelerated roll-out of its state-of-the-art 4G services across the country, it said.

However, pricing of the leases is to be determined by the prevailing market price at the time Reliance Jio Infocomm starts to use the network.

"The agreement is based on arms length pricing at prevailing market prices,the Jio release said adding, Reliance Jio Infocomm (is) to accelerate roll out of its 4G services across the country using Reliance Communications' extensive intra-city network.

Both companies didn't reveal financial aspects of the deal.

This is the third agreement between the two companies, following the inter-city optic fiber sharing agreement signed in April 2013, and the nationwide telecom towers infrastructure sharing agreement signed in August 2013.

Check update: Reliance Industries (RIL)