Bharti Airtel hits infrastructure sharing deal with Reliance Jio
India's leading mobile phone operator Bharti Airtel has struck a comprehensive telecom infrastructure sharing deal with Mukesh Ambani-led Reliance Jio Infocomm, a move that that is expected to cut costs the two companies incur on their respective networks.
The deal will allow the two companies to use each other's infrastructure. In other words, the two companies can now use each other's towers, optic fibre, submarine cable networks, and internet broadband services.
The companies said the partnership was intended at avoiding duplication of infrastructure, providing redundancy to enhance service quality, and preserving the environment.
Under the terms of the deal, RJIL will rent two thousand national towers from Bharti Airtel and use nearly 8,000 kilometers of inter-city and intra-city optic fibre owned to Airtel.
Commenting on the deal, Angel Broking's Ankita Somani said, "This deal, which is even bigger than the infra sharing Reliance Jio Infocomm has signed with Reliance Communications, is unprecedented."
The two companies also announced that the infrastructure sharing deal could be extended to 2G, 3G as well as 4G roaming services. However, they didn't reveal the size and details of the deal.