Reliance ADAG's Reliance Communications is the only operator in India to hold 5 MHz or of the most valuable 800-850 MHz band spectrum. The company is in advanced stage of discussions for finalising nationwide trading and sharing arrangements in the 800-850 MHz band and reciprocal agreements for roaming by respective customers on each other’s networks.
These arrangements will facilitate RCOM's customers to access Reliance Jio's 4G/ LTE networks on an asset-light and minimal capex model, while Reliance Jio's customers can fall back on RCOM's extensive 2G and 3G networks.
Nitin Soni of Fitch Ratings says this is on expected lines. "Jio and RCOM's spectrum sharing or trading was and is very likely. It is not very surprising that they are in advanced stages of sharing their spectrum in the 800 MHz band," he told CNBC-TV18. According to him, it is very important for Jio to have access to the contiguous 800 MHz spectrum in the overlapping 10 circles where it does not have that kind of a spectrum. It is also credit positive for RCOM given that it has USD 6 billion of net debt on its balance sheet.
These arrangements will facilitate RCOM's customers to access Reliance Jio's 4G/ LTE networks on an asset-light and minimal capex model, while Reliance Jio's customers can fall back on RCOM's extensive 2G and 3G networks.
Nitin Soni of Fitch Ratings says this is on expected lines. "Jio and RCOM's spectrum sharing or trading was and is very likely. It is not very surprising that they are in advanced stages of sharing their spectrum in the 800 MHz band," he told CNBC-TV18. According to him, it is very important for Jio to have access to the contiguous 800 MHz spectrum in the overlapping 10 circles where it does not have that kind of a spectrum. It is also credit positive for RCOM given that it has USD 6 billion of net debt on its balance sheet.
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