Indian operators Reliance Jio Infocomm and Reliance Communications (RCom) have signed agreements to share spectrum in the 800 MHz band across 17 circles. Under the deal, RCom will transfer its 800 MHz band spectrum in nine circles to Jio. Access to the enhanced spectrum footprint in the 800 MHz band will support their LTE services roll-out. The spectrum sharing agreement between Reliance Jio and RCom will result in network synergies, enhanced network capacity and spectrum optimization leading to capex efficiencies, the two companies said.
Also as part of the deal, Reliance Jio and RCom plan to enter mutual Intra Circle Roaming (ICR) arrangements. According to RCom, its customers will benefit from access to Jio's nationwide LTE network under the reciprocal sharing and ICR agreements. The agreements are subject to liberalisation of RCom's spectrum in the 800 MHz band and obtaining requisite regulatory approvals.
RCom expects to raise around INR 45 billion through the spectrum deal with Reliance Jio, the Economic Times reported citing sources familiar with the matter. RCom will use the funds to pay the Department of Telecommunications (DoT) most of the INR 53.8 billion it needs for liberalising its airwaves in 16 circles. The balance will be paid from the proceeds of the recent real estate sales signed by RCom, the paper said.
