RCOM inks tower sharing deal with S-Tel; in talks with Aircel for similar arrangement

1 Sep 2009

Indian telco Reliance Communications (RCOM) has inked a deal with yet-to-launch mobile network operator S-Tel that will see the two operators share infrastructure, including mobile towers, Reuters reports. Under the deal S-Tel will be given access to 10,000 towers owned by RCOM in six telecoms circles, although no financial details of the agreement have been disclosed.

In separate but related news, the Business Standard is claiming that RCOM may be set to sign a similar infrastructure sharing deal, worth approximately USD300 million, with mobile operator Aircel. It is understood that any deal between RCOM and Aircel could see the latter gain access to RCOM’s infrastructure in all circles where it has rolled out commercial services. It is thought that Aircel is looking at the possible deal as a means of both reducing its operating costs and expanding its mobile coverage.