Reliance Jio Infocomm Limited (RJIL) has reportedly signed a contract with Huawei for sourcing various 4G devices including smartphones, tablets and Mifi dongles. The operator plans to launch 4G service in 2015 in around 5,000 towns and cities, accounting for over 90 per cent of urban India and over 215,000 villages.
According to sources, RJIL has signed similar agreements with couple of other Chinese device makers as well.
The move comes after RJIL raised $750 million loan (in early May 2015) to procure goods and services from South Korean firms Samsung Electronics and Ace Technologies Corp. While Ace Technologies provides telecom equipments, Samsung has its portfolio spread across technology vertical.
As per the licensing agreement, the deadline for all companies which won BWA spectrum in 2010, including RJio, to roll out the services in at least 90 per cent of the service areas is August 31, 2015. In case the companies which fail to meet the deadline, the Department of Telecommunications will have the right to withdraw the radiowaves.
