Reliance Communications To Float $500-million Tender For 3g Rollout

[Honest 836]

Reliance Communications to float $500-million tender for 3G rollout

5 Aug, 2008, 0128 hrs IST, ET Bureau

NEW DELHI: Reliance Communications is all set to float a $500-million tender for GSM 3G networks. At present, RCOM is predominantly a CDMA-based operator. However, sources close to the development say that the company is looking at 3G services only in the GSM space.

Sources told ET that the decision to go in for the 3G order was taken over the weekend while adding that the tender document, which is being prepared, would be sent to leading equipment vendors in the next three to four days. “The tender covers equipment supply and servicing for commissioning of the 3G network. The leading global vendors who are in preliminary talks with RCOM for the 3G deal include Huawei, Alcatel Lucent, Nokia Siemens Networks, ZTE and Ericsson,” sources added. The move comes just days after the government unveiled the 3G policy, which listed out the frequency bands and well as the auction procedure for these frequencies.

Currently, all mobile services offered in the country run on second generation (2G) networks. RCOM already offers second generation GSM service in eight circles and holds licenses to launch mobile services on this technology platform in the remaining 14 circles also. RCOM got a pan-India GSM licence in December 2007 and the department of telecom (DoT) allotted it GSM spectrum for the 14 circles earlier this year. The company plans to launch second generation GSM services in the top cities in these 14 circles by the year-end. Earlier this year, RCOM had awarded a nationwide 2G GSM rollout contract for electronics valued at about $600 million to Chinese telecom network major Huawei for these 14 circles.

While the winner of the 3G tender will provide hardware components, RCOM will lease all passive infrastructure for its 3G network from Reliance Infratel, the hived off tower arm of the company. Company sources also said that the 3G networks will be overlaid on the 2G networks that are nearing completion. Besides, a bulk of the $500 million tender will be towards setting up 10 million lines across the four metros, they said.

RCOM will have to compete with other GSM majors such as Bharti Airtel, BSNL, Vodafone Essar and Idea Cellular in the GSM space. Besides, the auctions for 3G spectrum will be intensely fought battle as several international communication majors such as NTT DoCoMo, AT&T and Verizon amongst others are likely to enter the fray.

[Arun 795]

However, sources close to the development say that the company is looking at 3G services only in the GSM space.

uh so no EVDO?

[srk006 21]

It would be pretty sad for us the cdma subscribers if they are not willing to rollout 3g. why don't these guys understand ev-do gives more speed than their gsm counterpart! If reliance don't launch 3g cdma, then tata will definitly get spectrum since only 2 spaces are there and 1 is reserved for bsnl.

and I think in the future tata may be the no.1 in cdma in india. Reliance in its pursuit to make more bucks from Gsm will not make success there and also looseout on cdma front!

Edited August 5, 2008 by srk006

[KumaarShah 143]

^^^

Good for all of us if the above scenario actually happens.... Ha Ha Ha