Reliance Jio and Bharti Infratel Join Hands in Tower Infrastructure Sharing

Pan India 4G spectrum holder Reliance Jio Infocomm and Bharti Infratel, today announced the signing of a Master Services Agreement for tower infrastructure sharing.

Reliance JIO Infocomm Logo_2

Under the agreement, Reliance Jio would utilize the telecom tower infrastructure of Bharti Infratel to launch its 4G Mobile and Data services across all circles. As per the agreement, the pricing would be at ‘arm’s length,’ based on prevailing market rates.

Sanjay Mashruwala, Managing Director, Reliance Jio said, “This agreement is in line with our earlier comprehensive telecom infrastructure sharing arrangement with Bharti Airtel Limited aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment. The agreement will help us with the faster roll out of our services across the country.”

D S Rawat, CEO – Bharti Infratel Limited said, “We are delighted with this agreement to offer our world-class telecom infrastructure to Reliance Jio. Our vast footprint and high network uptime levels will offer significant synergies of faster access to market and lower operational costs. The agreement would also benefit our existing customers with lower rentals and energy charges as a result of additional sharing. We look forward to a long and mutually beneficial relationship with Reliance Jio.”

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  • The Telecom Analyst (Kolkata Circle) March 5, 2014 11:23 pm

    We want reasonable tariff and quality service.

  • Saurabh March 5, 2014 10:41 am

    @All, Let me make clear to you that Bharti Infratel is the independent infrastructure arm of Bharti and it has nothing to do with Bharti Airtel. They provide passive infrastructure to telecom operators. There are many places where Uninor or Videocon are using towers installed by Bharti Infratel but it doesn’t affect their tariffs or they don’t have agreement with Airtel to hike tariffs. In my area Videocon has now used Idea’s tower provided by Indus towers and they (Videocon) have installed their own equipment and mounted the trans-receivers on their mast and they will pay market price for using tower.

    It all about taking towers on lease and every company install their active infrastructure. It helps them reduce the cost of investing in passive infra like mast etc. and also save time for quicker roll out. Sharing infra will help them RJio to cut cost which will result in cheaper tariffs. It is not a deal between Bharti Airtel and RJio, it’s between RJio and BIL. :)

  • Manish March 5, 2014 4:18 am

    Does this mean that airtel will be able to offer 4G service utilizing jio spectrum in the circles where it does not have spectrum. I guess lobbing must be going on for relaxing spectrum sharing rules.

  • VIJAY KANT MISHRA March 4, 2014 9:15 pm

    Lo Bhai! Kar li Reliance Jio ne cheap tariff ki opening. Airtel karne nahi dega aur Jio kar nahin payega.

  • susanta March 4, 2014 9:12 pm

    jio with Airtel………..

    forget it and stop to see day dream price definately will be hike……

  • Sreedhar March 4, 2014 8:52 pm

    What does the following sentence mean?? Does this mean prices will be of not much difference between both the operators???
    “As per the agreement, the pricing would be at ‘arm’s length,’ based on prevailing market rates”

    • Ashish March 5, 2014 2:35 am

      Pricing would be at arms length means he is talking about the pricing of the agreement which renews every year according to market. And as and when bharti infratel will add new towers it will be included. Don’t miss it the pricing of tariff. Both are different. Atleast that is what I understood.

  • Rohit March 4, 2014 8:05 pm

    Hope the cost benefit will be passed To end customers with lower tariff

  • Krish March 4, 2014 7:58 pm

    @ Bafna sir
    will this deal include the towers of Indus tower (where Bharati has 40% stake in Indus tower)?
    please explain.

    • Sanjay Bafna March 4, 2014 8:36 pm

      Yes, Indus tower included.

  • Chandra Sekhar Mandal March 4, 2014 7:14 pm

    Hope Reliance Jio soon launches 4G in India with cheap tariffs.

    • Karandeep singh March 4, 2014 8:30 pm

      @ Chandra sekhar, How Reliance Jio launches 4G in India with cheap tariffs if they share infrastructure with Airtel?

      • Esmail March 4, 2014 11:03 pm

        Sharing of infrastructure with Bharti has nothing to do with the tariffs of Jio, in fact it is a wise move by Jio, if they would have invested in setting up their own infrastructure it would have added overhead to their Capex which would lead to higher tariffs, here they are renting Bharti’s towers at the prevailing market rate of leasing towers, they are not paying anything extra above the market value. Airtel will benefit from this in a way that the excess capacity of its infrastructure will be utilised and the rent they will earn from Jio will help them keep their tariffs moderately priced as well, so its a win win situation for both Mittal and Ambani. there is no downside of this deal, Jio will launch services with data tariffs significantly lower than the current 3G tariffs, and this deal does not imply that Jio and Airtel will have the same tariff since they are sharing the same towers, though Airtel will try its best not to price their services much higher than Jio to prevent loss of subscriber base.

        • Muhawid P B March 5, 2014 12:17 am

          If reliance jio uses airtel’s towers to provide its services, why jio leased rcom’s towers ?

          • Ashish March 5, 2014 2:40 am

            Because there are many places where airtel don’t have coverage but reliance have, so in short reliance is one of widest coverage telecom operator in india. Like in my office I recieve reliance network but not airtel. Even my colleague says they recieve better signal with reliance.

            • chetan March 5, 2014 11:02 am

              @Ashish, you must be talking about Rcom CDMA signals not GSM. because their GSM coverage is very poor as not all CDMA towers are covered with GSM boosters