India’s Reliance Industries and Reliance Communications (RCom) have agreed a fibre sharing deal that marks a thawing of relations between the two brothers that own them.
Under the Rs12bn (US$221m) plan, the telecoms arm of Reliance Industries,…
India’s Reliance Industries and Reliance Communications (RCom) have agreed a fibre sharing deal that marks a thawing of relations between the two brothers that own them.
Under the Rs12bn (US$221m) plan, the telecoms arm of Reliance Industries, controlled by Mukesh Ambani, will use the fibre network of RCom, which is owned by his brother Anil.
The move enables Reliance Industries to roll out nationwide 4G services, while easing pressure on cash-strapped RCom.
RCom explained: “As per the agreement, RCom will in turn have reciprocal access to optic fibre infrastructure to be built by [Reliance Industries] in the future.”
The company is also reportedly in talks to lease tower assets from Reliance Industries in a deal that could see the latter buy a stake in Reliance Infratel, the towerco unit of RCom.
Mukesh and Anil Ambani have been estranged for several years, and the possible closure for one of Asia’s most high-profile corporate feuds will likely prompt speculation of further tie-ups between the two.
The brothers received their assets following the death of their father, Indian business magnate Dhirubhai Amban, in 2002. They stopped talking to each other in 2005 after a dispute over the supply of gas between the two companies.
