Reliance's Ambani brothers team up on 4G services rollout

Reliance Industries has the spectrum, while Reliance Communications owns the fiber-optic network

Reliance Industries and Reliance Communications are sharing infrastructure for the rollout of 4G services in India, apparently ending a dispute between the two Ambani brothers who head the companies.

Reliance Industries, which previously acquired 4G licenses and spectrum in 22 service areas, will pay 12 billion Indian rupees (US$219 million) to share intercity fiber-optic infrastructure built by Reliance Communications, which operates mobile telephony and broadband communications services in the country.

Relations between the brothers, Mukesh Ambani, chairman and managing director of Reliance Industries, and Anil Ambani, chairman of Reliance Communications, have been bitter previously, leading Reliance Industries to scupper a proposed merger in 2008 of Reliance Communications with MTN Group in South Africa. The negotiations ran into legal threats from Reliance Industries, which claimed that it had the right of first refusal to any disposal of the controlling stake in Reliance Communications.

Reliance Industries acquired in 2010 a 95 percent stake in Infotel Broadband Services , which had won licenses for broadband wireless services in the country. The brothers had scrapped a month earlier an agreement not to compete in a number of businesses.

Under the deal announced Tuesday, Reliance Communications will provide Reliance Jio Infocomm, a unit of Reliance Industries, access to its 120,000 kilometer fiber-optic network. Reliance Communications will in turn have access to the fiber-optic network being laid out by Reliance Jio. The deal is described as the first step in cooperation between the two companies to optimize the utilization of their infrastructure.

The entry of Reliance Industries, a large private company in country, into the 4G market could shake up an industry that is already facing losses and is undercapitalized after huge tariff wars and rising government regulation, analysts said.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuestelecommunicationinvestments4gReliance CommunicationsReliance Industries

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?