News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 14 years ago
Rediff.com  » Business » RCom, Aircel may sign $300 mn infrastructure deal

RCom, Aircel may sign $300 mn infrastructure deal

Source: PTI
August 31, 2009 20:31 IST
Get Rediff News in your Inbox:
Reliance Communications' tower business Reliance Infratel is likely to enter into an end-to-end telecom infrastructure agreement with Aircel for towers, voice carriage and bulk bandwidth worth about $300 million.

According to sources, Aircel and Reliance Communications are close to entering into telecom infrastructure sharing agreement, estimated to be worth about $300 million, which will cover all circles where Aircel has rolled out its telecom services and also the new ones where it expects to launch services soon.

Reliance Communications (RCom) will execute this agreement through its tower subsidiary Reliance Infratel, in which RCom holds a 95 per cent stake.

When contacted, a RCOM Spokesperson declined to comment on the development.

The agreement would provide Aircel access to Reliance Infratel's nationwide tower infrastructure comprising 50,000 sites and optic cable fibre backbone. This would help Aircel optimise its operational costs, while expanding or upgrading its mobile coverage.

Sources said the agreement is expected to offer RCom a revenue upside of over Rs 1,500 crore (Rs 15 billion). RCom already has similar agreements with Etisalat DB and Sing Tel.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!