Reliance Industries Limited (RIL) led byMukeshAmbani will share the fiber optic network set by Reliance Communications (RComm) headed by younger sibling Anil Ambani. RIL will use the existing network for its new telecommunication venture- Reliance JioInfocomm providing high speed data and voice services over fourth generation (4G) telecomm networks.
This deal is the first collaboration of RIL with RCom. As a part of this deal, Reliance JioInfocomm will get an access to the national and international fibre optic network of Reliance Communications. At present, RComm is reading the existing network so as to suit the usage of RIL. Once the fibre optic network is customized in a way preferable by RIL, the payment of 1,200 crore will be released.
Setting up the infrastructure for any new telecomm venture is a cumbersome task. According to BSE, more telecomm infrastructure – sharing deals are on the cards. But none would be as major as the services of JioInfocomm riding on the network of Reliance Communications.
The deal says that both the companies will mutually utilize towers and other assets. Apart from this on a reciprocal basis, when a full-fledged ecosystem is built for the upcoming 4G services, the same can be used by RComm.
Reliance JioInfocomm is set to make an entry into the telecom industry by offering its exclusive 4G data services at an affordable price across the country. As per the launch plan, these services will be first launched in the three metros namely- Mumbai, Delhi and Bengaluru. The official plans for its launch are still unannounced. But according to sources, the services to be provided by RIL will be priced low to capture the market share. By 2015, the cities and towns across the country will be covered under 4G services. Also as a part of having initial infrastructure, RIL will set up towers in Mumbai, Delhi and Bengaluru. The 4G services provided by JioInfocomm will have a speed up to 100 megabits per second. The users will have seamless viewing of online HD videos, gaming, movies, download of heavy files and many others. In our country, the pricing matters the most, to capture this tendency of Indians, the price of these data services although being low will not compromise on the quality factor. It will create an impeccable value for its users.
The company has also partnered with the South Korean conglomerate Samsung to make devices which are compatible with LTE(Long-term evolution) 4G technologies. The devices too would be priced to fit the average Indian mobile device spend.The launch of JioInfocomm in India is being planned very strategically as it is the dream project of MukeshAmbani.