Infratel signs $205m network sharing deal with S Tel

Dylan Bushell-Embling | August 31, 2009

telecomasia.net

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India's Reliance Infratel has signed an infrastructure-sharing deal with new carrier S Tel worth up to 10 billion rupees ($204.7 million) over 10 years.

Under the arrangement S Tel will used Reliance's network to offer mobile services in six telecom circles. Reliance will also provide fiber backbone access for intercity connectivity.

S Tel, 49% owned by Bahrain’s Batelco, plans to launch mobile services in Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu and Kashmir by the end of the year.

The deal reportedly covers around 10,000 sites.

The deal should bring in up to 10 billion rupees, and takes Infratel's order backlog to around 31 billion rupees, a source told the Wall Street Journal.

Reliance Infratel, 95%-owned by Reliance Communications, also recently signed a 100 billion rupee network sharing deal with Etisalat DB Telecom.

Reliance plans to take Infratel public once market conditions become more favorable, and is in the meantime looking to sell a 5%-10% stake to a strategic investor.

Source:

telecomasia.net

Dylan Bushell-Embling

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