Reliance Jio owned by Mukesh Ambani and Reliance Communications owned by Anil Ambani are plannning to jointly roll out 4G services across 10 Indian telecom circles by December 2015. Mukesh and Anil are brothers and parted ways back in 2006, which resulted in split of Reliance Industries humongous empire!
Latest developments suggests that billionaire brothers have buried the hatchet for mutual benefit. According to people in the know of the matter, the two Ambani siblings have approached DoT to inform about their plans on spectrum sharing.
The partnership aims to offer 4G LTE services on 800-850 MHz band, which was earlier used for CDMA networks by RCom. Telecom circles likely to see the 4G LTE roll out includes Bihar, Madhya Pradesh, Mumbai, Haryana, Jammu and Kashmir, UP-East, Odisha, Assam, Himachal Pradesh, and the Northeast. The telecom regions listed above roughly amount to 35% of the overall pan-India telecom revenues.
The cooperation between two telecom giants cover areas such as maintenance and servicing of infrastructure, common network operating centers, data centers, content and retail outlets.
RCom is also in talks to merge MTS (Sistema Shyam Teleservices), which operates only on the 800 MHz CDMA band, with itself. In addition to that, RCom also has 800 MHz airwaves in its own kitty as well. In recently conducted spectrum auctions Reliance Jio bought its own airwaves in 800 MHz band. This essentially means that these companies will roll out a superior 4G LTE service on this 800 MHz band.
Initially, Reliance Jio wanted to roll out its 4G LTE network across 200 cities at the time of launch, but due to variety of reasons it has scaled down its target to 50 cities. Some telecom analysts believe that it may take up to 2 years for this cooperation to start working smoothly.