RCom surges on signing pact with Reliance Jio Infocomm

Reliance Jio Infocomm and RCom has signed a definitive agreement for approximately Rs 1,200 crore for sharing the company's inter-city optic fiber network.

Reliance Communications (RCom) has surged 16% to Rs 66.20 after the company said it has sign Rs 1,200 crore agreement with Reliance Jio Infocomm, a telecom arm of  Reliance Industries, for sharing the company’s inter-city optic fiber network.

“Reliance Jio Infocomm and Reliance Communications has signed a definitive agreement for approximately Rs 1,200 crore as one time indefeasible right to use (IRU) fees for sharing the company’s nationwide inter-city fiber optic network infrastructure,” RCom said in a media release.

Under the terms of the agreement, Reliance Jio Infocomm will utilize multiple fiber pairs across RCom’s 120,000 kilometers inter-city fiber optical network to provide a robust and future-proof backbone for rolling out its state-of-art 4G services.

As per the agreement, RCom’s will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future, it added.

The stock opened at Rs 57.10 and has seen as many as a combined 33.46 million shares changing hands on the counter till late noon deals on NSE and BSE.