Reliance Jio Infocomm (RJIL), the telecom arm of Mukesh Ambani-controlled Reliance Industries (RIL), and Anil Ambani's Reliance Communications (RCom) entered into an agreement to trade and share spectrum. While RJIL will buy spectrum from RCom in the 800-megahertz (MHz) band across nine circles, the two companies will share spectrum in the 800-MHz band across 17 circles.
RIL disclosed the details in a regulatory filing with the BSE on Monday.
"The spectrum arrangements between RJIL and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utliisation and capex efficiencies," RJIL said in a statement.
There will be optimisation and savings in costs as well, the statement added.
The financial details of the transaction were not disclosed by the two companies.
The agreement will be subject to liberalisation of spectrum in the 800-MHz band held by RCom for which RCom will have to pay Rs 5,384 crore to the Department of Telecom.
The spectrum liberalisation fee would apply to all circles where airwaves weren't sold via auctions, according to Business Standard.
The deal is expected to enable RJIL in its full-fledged launch of 4G services.
Reliance Industries share closed at Rs 1,018 on Monday on the BSE, down 5.14% from its previous close.
RCom ended the day at Rs 70.70, a loss of 3.22% from its previous close.