The Ambani brother’s agreement to share resources and exchange circle benefits is a breakthrough development in India’s data delivery sector.
With Mukesh Ambani’s 4G venture-Reliance Jio (RJio) is expected to take away a large volume of data thirsty customers in the country’s 100 mn strong mobile data market, the agreement will give it more power against the existing voice service providers.
As part of the agreement, Reliance Jio will buy spectrum from Reliance Communication in nine circles by paying Rs 4500 immediate cash. RCom’s benefit is that it can use the amount to pay the license fee to TRAI.
Besides, the deal makes the two to share spectrum in 17 of the country’s 22 telecom circles.
RJio is already a big threat to the almost consolidated telecom sector especially for the established voice service firms. They have poorly served the data segment with handicapped 3G and charging exorbitant prices, thus creating attrition among customers.
With mobile broadband oriented services waiting to explode and entrepreneurs cursing the poor delivery of 3G broadband services, the new deal gives a golden opportunity for RJio to make a big bang entry into the data segment.
Alliance between the two brothers will be gain for the customers as it may enhance the quality of the service by Rjio as well as its reach across the c country.