Militants opened fire at an army patrol at Kanjikulla in Yaripora area of south Kashmir's Kulgam district, about 80 kms from here, a police officer said.
Sepoy Dharam Ram was injured in the firing and succumbed later, the officer said.
Security forces immediately cordoned off the area and tracked down a militant to an orchard where he was killed in a brief gunfight, the police officer said.
The attack was apparently directed at telecom operators who have been threatened earlier, a police officer said.
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He said three workers of the BSNL franchisee were injured in the firing and they were rushed to a local hospital, where doctors referred them to a hospital in Srinagar for treatment.
One among the injured, Mohammad Rafiq (26), a resident of Handwara area of Kupwara district, succumbed to his injuries at the Srinagar hospital.
The two injured, Ghulam Mohammad Bhat (40) and Imtiyaz Ahmad Lone (30), both residents of Sopore township, were being treated, the officer said.
Although officials were tight-lipped as to why the militants were targeting telecom installations, sources said the ultras were upset about "theft" of their communication equipment from mobile transmission towers in Sopore and surrounding areas earlier this month.
The militants had allegedly installed communication equipment atop the towers of private and PSU companies.