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RCom gains after entering into strategic partnership with Reliance Jio Infocomm

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Capital Market
Last Updated : Jan 19 2016 | 12:01 AM IST

Reliance Communications rose 1.03% to Rs 73.80 at 12:20 IST on BSE after the company announced entering into strategic partnership with Reliance Jio Infocomm covering 4G Lte services.

The separate announcements were made by Reliance Communications and Reliance Industries during market hours today, 18 January 2016.

Meanwhile, the BSE Sensex was down 108.94 points, or 0.45%, to 24,350.84.

On BSE, so far 17.35 lakh shares were traded in the counter, compared with an average volume of 22 lakh shares in the past one quarter. The stock hit a high of Rs 75.40 and a low of Rs 68.85 so far during the day. The stock hit a 52-week high of Rs 91.80 on 1 January 2016. The stock hit a record low of Rs 45.65 on 25 August 2015. The stock had underperformed the market over the past one month till 15 January 2016, sliding 9.09% compared with Sensex's 3.42% fall. The scrip had had, however, outperformed the market in past one quarter, declining 6.53% as against Sensex's 9.46% fall.

The large-cap company has an equity capital of Rs 1244.49 crore. Face value per share is Rs 5.

Meanwhile, shares of Reliance Industries (RIL) dropped 1.5% to Rs 1,057.

Reliance Jio Infocomm (RJIL), a telecom arm of RIL and Reliance Communications (RCom) announced the signing of agreements for change in spectrum allotment in 800 MHz band across 9 circles from RCom to RJIL, and for sharing of spectrum in 800 MHz band across 17 circles.

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As part of the enhanced strategic collaboration, both companies also intend to enter into reciprocal Intra Circle Roaming (ICR) arrangements. Access to enhanced spectrum footprint in the 800 MHz band will complement RJIL's best-inclass LTE services rollout, providing increased network coverage and superior service quality.

The spectrum arrangements between RJIL and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capital expenditure efficiencies. Both operators anticipate considerable savings in operating costs and future investment in networks. RCom's customers will benefit from access to Reliance Jio's world class nationwide 4G LTE network under the reciprocal sharing and ICR agreements. The arrangements are subject to liberalisation of RCom spectrum in the 800 MHz band and obtaining requisite approvals. These agreements further strengthen the comprehensive framework of business cooperation between RJIL and RCom Group, following the nationwide long term IRU agreements for inter and intra city optical fibre networks, and for sharing of telecom tower infrastructure.

On consolidated basis, RCom's net profit rose 2% to Rs 156 crore on 3.3% growth in net sales to Rs 5260 crore in Q2 September 2015 over Q2 September 2014.

RCom is an integrated telecommunications service provider.

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First Published: Jan 18 2016 | 12:20 PM IST

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