Reliance Communications (RCOM) and Reliance Infratel, its subsidiary, on Wednesday bagged a major outsourcing deal worth Rs 10,000 crore over 10 years from Etisalat DB (earlier called Swan) involving telecom infrastructure requirements. Etisalat would pay the two companies to use their towers and transmission network for a period of 10 years in the 15 circles where it holds licences. The boundary of a telecom circle roughly coincides with the boundary of a state.
All the new telecom service providers lease towers from independent tower companies as setting up their own towers requires considerable investment and time. The Reliance-Etisalat deal is the largest by any operator so far.
“As a new entrant in this dynamic market, this alliance provides us with key, strategic advantages that will ensure a robust, speed to market and cost-effective roll-out of services,” said Mohammad Hassan Omran, Chairman Etisalat.
“This win-win agreement will ensure a faster rollout, optimum costs and a time to market advantage,” said Anil Dhirubhai Ambani, chairman, Reliance ADA Group.
“This agreement presents large cost optimisation benefits with an asset light model, improvement in capital productivity,” Inder Bajaj, president, Reliance Infratel told Hindustan Times.