Mumbai, Jan. 25 -- Mukesh Ambani-led Reliance Industries Ltd (RIL) is in talks with Reliance Infratel owned by younger brother Anil Ambani for leasing its 50,000 towers. Reliance Infratel is a subsidiary of Reliance Communications (RCom), a pan India telecom service provider with huge debt of R36,700 crore.
RIL may offer up to R8,000 crore for leasing towers for a period of 10 years, said sources.
The company is entering into providing high-speed wireless broadband services based on the LTE-technology through its subsidiary RIL Infotel. The subscribers would be able to get a download speed of up to 100 Mbps.
"As of now there is no proposal to infuse equity into Reliance Infratel. The company. However, is in talks for long lease of towers," said a person familiar with the development.
"Reliance Industries is the only pan-India 4G spectrum owner. The service rollout is reported to be in 2013 and its best option remains to lease towers from Reliance Infratel," according to a report by brokerage firm CLSA. "Incremental tenancies will improve RCom's financial health."
Published by HT Syndication with permission from Hindustan Times.