Reliance Jio Infocomm Limited (RJIL) has decided to create two wholly-owned subsidiaries for its fibre and tower business. The RJIL board has approved the demerger. However, the decision is subject to further regulatory and shareholder’s approvals.

This move will enable the companies to work as separate infrastructure providers (IP), a company offering independent tower services and another leasing out optical fibre to other telecom players and internet companies. The split would also give the companies the flexibility to offer their services separately.

Currently, RJIL owns and operates about 220,000 towers and fibre assets of around 300,000 km. Reliance Communications (RCOM’s) fibre and towers will also be a part of the new units eventually. RCOM has already sold its 178,000 route km of fibre assets to RJIL and is set to also sell its 43,000 towers.