Ambani brothers partner for spectrum and 4G services

Ambani brothers partner for spectrum and 4G services

Reliance Communications and Reliance Jio Infocomm are in advanced talks to share and trade spectrum and offer high-speed 4G services.

The move marks another step towards collaboration for the Ambani brothers after their father Dhirubhai Ambani’s death in 2002 created a power struggle that led to the split of Reliance, India’s largest private sector group.

Reliance Communications’ Anil Ambani told his company that the partnership would allow the company to access Jio’s 4G mobile networks. In return, Reliance Jio can use Reliance Communications' 2G and 3G networks. The two companies will also reportedly trade and share 4G mobile spectrum.

"These arrangements (for spectrum in the 800-850MHz band) will facilitate RCom customers access to Reliance Jio's world class 4G/LTE networks on an asset-light and minimal capex model," Anil Ambani told company shareholders at Reliance Communications’ annual general meeting. 

Ambani said Reliance Communications could also announce the sale of its stake in its tower unit within the next two months, adding that its talks to merge with Sistema Shyam’s business are at an advanced stage.  

India is in the midst of a battle for 4G market share, following announcements by Bharti Airtel, Vodafone India and Reliance Jio to launch 4G services by the end of the year. 

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