Reliance Jio Infocomm has just crossed the first hurdle by announcing a Rs 1,200 Cr deal with Reliance Communications where the latter will offer its Nationwide Inter-City Optical Fiber Network for Reliance Jio.
Reliance Jio will utilize multiple fiber pairs across RCom’s 120,000 Km Inter-City Fiber Network to provide a robust and future-proof backbone for rolling out its state of the art 4G services. RCom will have access to OFC capacities built by Reliance Jio.
However, just a one time fee of Rs 1,200 Cr for 120,000 Km OFC network is a steal, Reliance Jio got in my opinion as building a similar network of this scale would cost the company a fortune.
According to Sources, this is just the first announcement and both of them are expected to announce an arrangement for Intra-City OFC Sharing along with Towers and other Related Passive Infrastructure.
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