Airtel undersea cables to carry Reliance Jio data
Mukesh Ambani's Reliance Jio Infocomm on Monday surprised the market by sealing an international data connectivity deal with the Sunil Mittal-led Bharti Airtel, sending out a signal that the billionaire's return to telecom would be more collaborative and less disruptive.
Since Ambani's 2002-03 telecom foray was marked by a fierce rivalry with Mittal's Bharti, the pact — in which Reliance will use Bharti's undersea i2i submarine cable networks to provide data connectivity across Asia Pacific — is seen as significant.
Coming close on the heels of Reliance Jio signing a similar pact for inter-city data traffic with Anil Ambani's Reliance Communications, the latest move signals that collaboration will not be restricted to the family. The market will now tune into the tower-sharing pacts Reliance Jio is expected to sign next — whether it would be only with RCom or extend to others as well. Reliance Jio officials have maintained that the company's model would be "asset-light", based on a range of partnerships where buying equity is ruled out.
Such concerns led the RCom scrip fall as much 5.46% after the announcement, to finally close down 3.28% at R94.50 on BSE. Bharti closed down 0.43% at R299.45 while RIL closed up 1.74% at R803.50.
"Reliance Jio Infocomm will use the dedicated capacity on Bharti's i2i submarine cable that connects India and Singapore to extend its network to customers in the Asia-Pacific region," the companies said in a joint statement, without revealing any commercial terms.
The i2i cable connects India
News From: http://www.7StarNews.com
Wednesday, April 24, 2013
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