Reliance Jio Infocomm (Reliance Jio), a subsidiary of Reliance Industries Limited (RIL) and Bharti Infratel inked a Master Services Agreement under which Reliance Jio would utilise the telecom tower infrastructure of Bharti Infratel to launch its services across the country.
As per the agreement, the pricing would be at ‘arm’s length,’ based on prevailing market rates. Speaking about this pact, Sanjay Mashruwala, managing director, Reliance Jio said, “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.”
D S Rawat, CEO – Bharti Infratel Limited added, “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.”
On February 25, 2014, Reliance Industries closed at Rs. 810.40, down Rs. 2, or 0.25 per cent. The 52-week high of the share was Rs. 927.90 and the 52-week low was Rs. 765.00.
The company’s trailing 12-month (TTM) EPS was at Rs 67.89 per share as per the quarter ended December 2013. The stock’s price-to-earnings (P/E) ratio was 11.94. The latest book value of the company is Rs 556.94 per share. At current value, the price-to-book value of the company is 1.46.