Reliance Communications Awards Nation-wide Gsm Roll-out Deal To Huawei

[Arun 795]

Monday, January 21, 2008

The Hindu

Chennai: Anil Ambani-piloted Reliance Communications (RCOM) has awarded Huawei, a leader in providing next generation telecommunications networks, a nation-wide GSM roll-out contract.

The deal is estimated to be worth over Rs. 2,000 crores.

The equipment contract to Huawei is the first nation-wide GSM roll-out contract for electronic equipment. Reliance Communications, sources said, would award more contracts in various other equipment categories over the next few weeks.

Under its GSM roll-out plan, the Anil Ambani company is planning to invest in excess of Rs,6,000 crores in GSM electronics alone.

The award of contract to Huawei comes in the wake of RCOM getting formal approval for additional radio waves, which will enable it to roll out pan-India mobile phones services using the GSM technology. RCOM, which has already a nation-wide presence in rival CDMA technology, has been offering GSM mobile phone services in eight circles - West Bengal, Kolkata, North-East, Assam, Bihar, Orissa, Madhya Pradesh and Himachal Pradesh. Recently, the company got start-up spectrum to launch nation-wide GSM services under its existing Unified Access Service Licence (UASL). "The grant of GSM spectrum to Reliance Communications in 14 circles reaffirms the company's stance on UASL being a technology neutral licence," sources said.

The nation-wide roll-out of GSM technology, company sources said, would commence a few months hence. ``We will deploy next generation IP (Internet Protocol) enabled GSM network,'' a top company official said.

The launch of GSM services, sources said, would enable the company harness substantial economies of scale of resources - the back-end network and front-end customer-interface infrastructure.

Reliance Communication claims that it enjoys a market share of 60 per cent in the CDMA space. It claims to enjoy a market share of 30-35 per cent in circles where it currently offers both CDMA and GSM services.

[shashank 8]

But when are they going to start the GSM services?

[KumaarShah 143]

Again chinese? Another classic in the making?

[kshah 452]

huwei is biggest hardware supplier in the world. They are OE suppliers to even other equipment manufacturers. Reliance CDMA is entirely huwei only.

[KumaarShah 143]

oh! and thanks!

I thought we are in for a repeat 'classic' case!

[kshah 452]

no one can be sure when Indian and chinese marries. We both know how to spoil products.

Especially when India is buyer. I have seen this my self. That INdian buyers teaches chinese how to spoil quality to reduce prices. U will be surprised to know that what US guys buys for US $ 40 and Gulf buyer for 30 (Same stuff) India buyer will teach chinese manufactuer to produce same at US $ 14.

Same product is retailed for US $ 100 in US, US $ 80 in dubai and about Rs. 4000 (US $ 90) in India. Indian brand will not last even 1/4th of US brand. I can not name product and brand.

[srk006 21]

Approximately, when can we expect RelianceGSM to hit the market(at least metros)? I know there is no correct announcement of the date from RCOM, but what are your views? Any guesses?

Edited January 22, 2008 by srk006

[KumaarShah 143]

^^^

RCOM has already stated that they will start GSM services in 2 months time. Lets wait and watch.

[srk006 21]

^^wow that would be awesome. Any link to their statement?

[@ksh@T 20]

well in 1 circle they had given the contract to NOKIA too as told by zee business

[KumaarShah 143]

^^wow that would be awesome. Any link to their statement?

In one news report it said two months and in another report, it said few months. So nothing is certain at the moment. Moreover, the Court case verdict also will have to be taken into consideration. I personally think RCOM GSM will start sometime by June 2008. It may start earlier if the courts give a favourable verdict to RCOM. Lets wait and watch.