Reliance Inks Indian Network Sharing Deal with Etisalat

India's Reliance Communications has agreed to a passive infrastructure sharing deal with greenfield operator, Etisalat DB. Under the terms of the agreements, Etisalat and its local subsidiary would outsource their telecom infrastructure requirements for the 15 telecom circles, encompassing end-to-end tower and transmission infrastructure to Reliance Infratel and Reliance Communications, respectively.

The agreement is expected to boost Reliance's group revenues by an average of US$220 million per year over the ten-years of the contract.

The two companies were originally reported to be in talks back in January, although at the time, the contract was thought to be for 15-years and worth US$330 million per year.

Last September, Etisalat brought around 45 percent of India's Swan Telecom for up to US$900 million - valuing the firm at US$2 billion. The company has licenses covering 13 of the country's 22 operating circles and has received radio spectrum in 10 of the circles. The remaining 55% of Swan Telecom's shares are owned by several entities, including Swan's primary promoter, the Dynamix Balwas Group, a Mumbai-based real estate and hospitality business group.

The company was later rebranded as Etisalat DB.

Under its operating license the Company can also provide Internet Telephony, Internet Services and Broadband Services. The company is headquartered in Mumbai.

Posted to the site on 22nd July 2009