RJIL and RCOM in pact for spectrum trading

RJIL and RCOM in pact for spectrum trading

In a likely sign of further truce between the two Ambani brothers, RIL-owned Reliance Jio Infocomm (RJIL) and Reliance Communications (RCOM) have signed pacts for spectrum allotment change as well as for spectrum sharing in 800 MHz band. Both the companies did not disclose the size of the deal.

“RJIL and RCOM have signed agreement for change in spectrum allotment in 800 MHz band across 9 circles from RCOM to RJIL and for sharing of spectrum in 800 MHz band across 17 circles. As part of the strategic collaboration, both companies also intend to enter into reciprocal intra circle roaming (ICR) arrangements,” RJIL said.

RJIL already holds 2300 Mhz in all circles, 1800 Mhz in 18 circles and 850 Mhz in 10 circles.

The spectrum arrangements between RJIL and RCOM will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capex efficiencies.

Both operators anticipate considerable savings in operating costs and future investment in networks, RJIL said.

Customers of RCOM will benefit from access to RJIL’s LTE network under the reciprocal sharing and ICR agreements. The arrangements are subject to liberalisation of RCOM spectrum in the 800 MHz band and obtaining requisite approvals, RJIL said.

These agreements further strengthen the comprehensive framework of business cooperation between RJIL and RCOM group, following the nationwide long-term indefeasible rights to use (IRU) agreements for inter and intra city optical fibre networks, and for sharing of telecom tower infrastructure, RJIL added.

In November last year, RCOM had decided to demerge Sistema’s Indian wireless business, carried on by Sistema Shyam Teleservices (SSTL) into the company, a deal which helped RCOM to acquire SSTL’s 800 / 850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint of minimum 5 MHz contiguous 800 / 850 MHz spectrum aggregating 148.75 MHz. The acquisition also helped RCOM to extend the validity of its spectrum in 800/850 MHz band in eight important circles by a period of 12 years from 2021 till 2033.

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