Mukesh Ambani-led Reliance Jio Infocomm will sign a contract worth 1.7 billion dollars (Rs 13980 crore) with Finland's Nokia. The company, helmed by his son Akash Ambani, is reportedly buying 5G network equipment from the Finnish communication equipment giant.
The contract is likely to be signed tomorrow at Nokia's headquarters near Helsinki. Senior executives of the company, banks financing the deal and Nokia's top executives will be present at the meeting, reported ET.
The Mukesh Ambani-led company is also buying network equipment worth 2.1 billion dollars from Sweden's Ericsson.
The company is gearing up before the launch of pan-India 5G rollout.
The two deals worth nearly 4 billion dollars are being financed by a clutch of global banks including HSBC, JP Morgan and Citigroup.
The Akash Ambani-led firm aims to cover the entire country by the end of 2023. It already has a presence in over 6000 towns and cities.
They have a budget of 25 billion dollars for the development of 5G infrastructure. They have already used 11 billion dollars in buying 5G spectrum. The remaining capital will be spent over the next four years to bolster 5G assets.
A US-based think tank recently valued Reliance's enterprise valuation at 88 billion dollars (over Rs 7.26 lakh crore). Reliance owns 66.5 percent stake in the company.
