When contacted, Reliance Infocomm spokesperson confirmed that a deal was likely to be finalised soon but declined to give details.
Sources, however, said that per minute call rates between India and China from Reliance phone could come down by as much as 55 per cent to Rs 8.
Currently all calls to China are routed through the United States or Europe resulting in extra cost for the subscribers.
After signing a deal, Reliance Infocomm would route calls using the extra bandwidth the company has in its FLAG telecom unit.
Reliance Infocomm is India's second largest privately owned mobile phone operator, with more than 15 million customers, mostly operating on CDMA technology.
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