In a bid to stretch its reach to more consumers, Reliance Communications (RCom) has hit an agreement with network provider Aircel to share each other's 2G network across India.

The agreement will enable subscribers of RCom and Aircel to roam or use each other's network anywhere in the country free of cost.

RCom described the agreement as the first step in 2G inter circle roaming (ICR) deals that the company is planned with other GSM operators in the country.

Gurdeep Singh, president & chief executive (wireless) at RCom, said that the time had come for such arrangements as industry was struggling to tackle high operational costs.

Announcing the 2G network agreement, Singh said, "We believe the time has come for such alliances as the industry is now moving into a consolidation mode."

The agreement with Aircel will allow RCom to access 10,000 additional base stations and nearly 15 crore additional addressable subscribers. In addition, it is expected to provide annual opex savings of Rs 500 crore plus one-time capex savings of estimated Rs 1,200 crore.

RCom is also expected to announce partnerships with other GSM operators such as Videocon, TTSL, MTS and Uninor over the coming six months.