Currently, their alliance is restricted to sharing towers and fibre-optic network.
Through the deal, to be signed in a few days, Reliance Jio, which faces challenges in the 2,300-MHz and 1,800-MHz spectrum bands (these don’t offer subscribers high-speed data indoors), can now address this issue by using RCom’s 800-MHz band.
RCom has five MHz of 800-MHz spectrum in most circles across the country and currently, this spectrum is unused.
After the spectrum is liberalised, it can be used for fourth generation (4G) long-term evolution services, too.
The intra-circle roaming pact will also give Reliance Jio roaming rights on RCom’s 2,100-MHz 3G band and offer services on this band.
The roaming deal will bring Reliance Jio on a par with rivals who have an advantage in that they have spectrum across bands to offer seamless data and voice services.
While Bharti has spectrum across the 900-MHz, 1,800-MHz, 2,100-MHz and 2,300-MHz bands, Vodafone has spectrum in the 900-MHz, 1,800-MHz and 2,100-MHz bands.
Earlier, Reliance Jio had spectrum in the 2,300-MHz band.
After the recent telecom spectrum auction, it bought spectrum in the 1,800-MHz band.
However higher bands aren’t well suited for 4G LTE data services, as telecom companies have to invest large sums in more towers for quality similar to that in a lower band.
With this deal, the company will be able to offer customers roaming rights on RCom’s spectrum in the 800-MHz and 2,100-MHz
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