The infrastructure sharing deal between Mukesh Ambani-owned Reliance Jio and Bharti Airtel will help former more than the later. Moreover, contrary to reports by some broking firms, it is not going to have any significant impact on RCOM.

Being a new operator, Reliance Jio desperately needs infrastructure to provide services. It is not possible for it to lay the infrastructure for launching its services by March. It has already tied up with his RCOM, owned by the younger Ambani brother, Anil Ambani. It is not sufficient for it to launch pan India operations. Hence, it went ahead and signed a deal with Bharti Airtel, which is the largest telecom service provider. There is nothing in the deal that harms RCOM’s interests. As far as Bharti and RIL are concerned, it is a win-win situation for both of them.

Under the agreement both companies will utilise each other’s infrastructure i.e. optic fibre, submarine cable networks, towers and internet broadband services
 
“The cooperation is aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment. This will also provide redundancy in order to ensure seamless services to customers of the respective parties”, the two companies has earlier stated in a joint statement.
 
It said that the arrangement could, in future, be extended to Roaming on 2G, 3G and 4G, and any other mutually benefiting areas relating to telecommunication, including but not limited to jointly laying optic fibre or other forms of infrastructure services. The pricing would be at ‘arm’s length’, based on the prevailing market rates.
 
As part of this arrangement, Bharti and Reliance Jio have already announced an agreement under which Bharti has provided capacity on its i2i submarine cable to Reliance Jio.