Reliance Jio is set to get an upstart as it signed a deal with Bharti Infratel to use its 35,000 towers for installing its base stations. In a joint statement issued on Tuesday, the two companies said that the pricing will be at an “arm’s length” and will depend on the market rates.

Bharti Infartel is an independent tower company owned by the Bharti Airtel group and managed by Akhil Gupta. It is a listed entity and has 42% equity in Indus Towers.

Reliance Jio is looking at all possible options to lease towers to install its base stations. It already has agreement with Reliance Communications (RCOM). It will also lease towers from Indus towers. Hence it is only a routine business activity and should not be seen as a co-operation between Airtel and Reliance Jio group.

 “This agreement is in line with our earlier comprehensive telecom infrastructure sharing arrangement with Bharti Airtel Limited aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment. The agreement will help us with the faster roll out of our services across the country,” said Sanjay Mashruwala, Managing Director, Reliance Jio said.

“We are delighted with this agreement to offer our world-class telecom infrastructure to Reliance Jio. Our vast footprint and high network uptime levels will offer significant synergies of faster access to market and lower operational costs. The agreement would also benefit our existing customers with lower rentals and energy charges as a result of additional sharing. We look forward to a long and mutually beneficial relationship with Reliance Jio.” Said D S Rawat, CEO - Bharti Infratel Limited.