Optic fibre connects Ambani
PTI
Mukesh Ambani-led Reliance Industries’ telecom arm will hire nationwide
optical fibre network of Anil's(L) Reliance Communications for the
roll-out of 4G services. File photo.
Eight years after parting ways, Mukesh Ambani and Anil Ambani on Tuesday
started a business collaboration that would allow Reliance Jio
Infocomm, controlled by Mukesh, to use the nationwide optic fibre
network of Anil’s Reliance Communications Ltd. for a one-time charge of
Rs. 1,200 crore.
Access to Anil’s optic fibre network would help Mukesh execute his plans
to provide broadband 4G services. Mukesh’s Reliance Jio, however,
hasn’t yet got the nod for providing voice services.
Recently, the government announced that broadband companies such as
Reliance Jio could offer voice services after paying a one time license
fee of Rs. 1,650 crore.
The deal will infuse the much-needed cash into RCom that reportedly has a
debt of Rs. 33,000 crore. Mukesh’s RIL, however, is sitting on a cash
pile of around Rs. 70,000 crore.
The optic fibre contract may well be the start of a deeper business
relationship between the brothers — one active in big ticket
infrastructure but with significant debts and the other with plenty of
cash to invest in new projects.
The next in line for Mukesh would be access to Anil’s extensive tower network, say observers.
The deal is also a major step in Mukesh’s calibrated return to big time
telecom, which, in 2005, had gone to Anil along with power,
infrastructure and finance when the brothers divided up the Reliance
business empire.
Keywords: Mukesh Ambani, Anil Ambani, Reliance Industries, Reliance Jio Infocomm, Reliance Communications, nationwide optical fibre network
PREETI CHAUHAN
PGDM 2sem
PREETI CHAUHAN
PGDM 2sem
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