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Reliance Jio - Pan India 4G / LTE network

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It has been apprised that through this move, Reliance will be first Indian operator to deploy this technology. But I read in this press release that Tata Teleservices Ltd (TTSL) signed contract with Huawei on 2 September 2010, to rollout an LTE-ready network in 5 circles- Maharashtra, Gujarat, Rajasthan, Kerala and MPCG.

Great going.

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Mukesh Ambani eyes next-generation security business with 4G telecom services

19 APR, 2011, 05.28PM IST,PTI Economic Times

NEW DELHI: Next-generation security and disaster management business seems to be next on the radar of Mukesh Ambani-led Reliance Industries, which will utilise its 4G telecom services for this new initiative.

Besides, RIL also plans to partner a global major for this new business and is roping in Vivek Lall, formerly a top Indian executive of global defence major Boeing, to head this venture, sources said.

"Reliance sees strong synergies in our rolling out 4G Broadband Wireless services and their use for enabling Homeland Security, Safe, Secure & Smart Cities as well as Disaster Management preparedness," a person in the know of the matter said.

"RIL plans to partner with global leaders in this domain to bring the latest technologies and innovation," he said, adding that Vivek Lall will be joining to drive these efforts.

An RIL spokesperson did not offer any comments. Lall, who was Vice President and India Country Head of Boeing for defence, space and security businesses, recently left the US-based global aircraft and aerospace major.

Earlier, he has also served as managing director of Boeing Commercial Airplanes in India.

The new initiative of RIL would involve significant investments and details are being finalised, sources said.

The group plans to invest USD 4.5-4.7 billion in telecom business over the next five years. It has already spent USD 2.8 billion on acquiring 4G licences and spectrum, which it got last year through acquisition of Infotel.

Infotel was the only entity to get pan-India licence in the auction of Broadband Wireless Access spectrum conducted by the government last year.

Telecom is among the five main businesses and RIL group expects to focus on in the next 5-10 years.

The group is present in energy and retail sectors, while mega plans are underway for telecom and finance sectors. Besides, it has also acquired a strategic stake in a cargo airline founded by aviation entrepreneur Captain Gopinath.

RIL is currently in the process of finalising arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others for its 4G telecom service offerings.

Globally, also the countries are gearing up to utilise 4G (fourth generation) broadband technology in their homeland security and disaster management practices.

In February, the US President Barack Obama announced that his government would spend USD 10.7 billion to build a nationwide 4G broadband network for public safety agencies, including police and fire departments.

The US has felt the need for a national broadband network ever since the terror attacks of September 11, 2001.

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Go MDA go!

By the way, because he has chosen LTE what will happen to the Sprint/Verizon 4G handsets that are currently being imported. they use Wimax so I assume we would never be able to use 4G on these right?

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:previous:

True....Sprint 4G is on WiMax but Verizon 4G is on FDD-LTE.

What we need in India is TDD-LTE.

We've to wait for such handsets.

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4G/LTE Developments in US China and Russia and Japan

1. US - LTE is being launched by both AT&T and Verizon – biggest carriers in US. Only Sprint Nextel is on WIMAX and is rumoured to be shifting to LTE in near future

a. Wimax Devices available as of now – 10

b. LTE devices available as of now – 9

2. China Mobile is also rolling out TD LTE network in 2300/2500 Mhz spectrum – similar to Indian market .

3. DOCOMO (Japan) and Vodafone (Europe) will also roll out FDD LTE in 800 Mhz band

4. YOTA- Russian carrier which is the biggest WIMAX deployed network in the world – is also planning to shift to LTE. Interestingly, YOTA’s biz model is being a third party 4G provider to all existing operators in Russia, so MTS user in Russia when he wants to use 4G automatically shifts to YOTA network on his 4G enabled handset

Hence TD LTE Devices will be global & will evolve much like GSM Quadband devices

Technology coexistence with existing standards (GSM/CDMA)

5. For both LTE and WIMAX - Co-existence with legacy standards (users can transparently start a call or transfer of data in an area using an LTE standard, and, should coverage be unavailable, continue the operation without any action on their part using GSM/GPRS or UMTS or CDMA

6. However, LTE in US is deployed at 700 Mhz in FDD LTE while in India the available spectrum band is 2300. Hence much like GSM evolution earlier, we will probably see launch of quad band handsets within LTE WIMAX currently operates on 2300 Mhz spectrum primarily both in US and Russia

The FDD LTE and TD-LTE versions of the 3GPP standard are very similar. As a result, devices can support both the FDD and TDD interfaces through a single chipset--i.e., without any additional cost. This is a hugely important new development: TD-LTE will benefit from the wide availability of FDD LTE devices that will be able to support TD-LTE as well. Unlike WiMAX, TD-LTE does not need to prove to have a substantial market share to convince vendors to develop devices. Vendors do not need to develop new devices, they simply need to add TD-LTE support to the existing ones.

Hence I believe Reliance Infotel will

1. Adopt LTE TDD

2. Source devices from China and US markets etc

3. Might become bulk data seller to other GSM, CDMA operators

4. Acquire strategic stake in Reliance Infratel (since ADA has unsucessfully tried to list the company) company

5. Acquiring spectrum from Etisalat, Videocon is also possible as both will be in the market after 2011 NTP

Already Aircel – other BWA winner has tested LTE and might go that route

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previous.gif Nice explanation. +1

Possibilities are really mouth watering. What i am really excited about is this one,

3. Might become bulk data seller to other GSM, CDMA operators

Are you trying to say that in the near future, lets say for a High End CDMA Device like the latest Androids with the addition of LTE Chipset >> A Reliance/Tata/MTS subscriber may use Voice/SMS of his respective operator and for data his handset will latch on to MDA's LTE network.. With the same handset and simultaneously?

Edited by rajanmehta

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@ Mr Mehta - Even for 4G devices today the device has a seperate NW identifier for 4G(much like EV in EVDO+1X combination)So where ever the network is present, the customer can manually or automatically switch on to 4G mode and latch on to it

As for NW sharing we have already intracircle roaming by operators which do not have a very strong NW in a particular zone. So even 4G should/will follow the same allignment and more depending on new telecom policy

With New Telecom Policy to be announded soon, we can also expect relaxation of rules for active infra sharing which again - will also bring in more convergence amongst operators on NW side.

@ ravi - thx :GirandoOjos:

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Good post Ujjwal.

I am thinking that the easiest way for MDA RIL to offer voice would be to buy out an existing voice provider.

But, if they do not, can they be a MVNO i.e. offer voice over someone else's network without need to own any spectrum themselves? That would be a the first time of potential pan Indian MVNO in India (Virgin by the way is a MVNO using TTSL network). If they do decide to be MVNO, RCOM seems safest bet to be the network.

Read these for MVNO implementation in India (old posts but clarify the benefits nicely).

http://www.cellular-news.com/story/36351.php

http://voicendata.ciol.com/content/goldbook/goldbook07/107031228.asp

http://www.medianama.com/2009/02/223-dot-gives-go-ahead-to-mvnos-in-india-who-has-the-spectrum/

Interesting times.

Edited by dipanlahiri

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Another line of thought

Lets rewind and see why CDMA earlier was not successful in attracting high ARPU subs or for that matter why original 900 Mhz license holders continue to hold the best customers(high ARPU)

The reason is "Customer Lag" - sheer laziness exhibited by a large number high ARPU customer base(both individuals and corporates. This is most exhibited in voice rather than data, where mobile number is not relevant(I'm discounting MNP here)

ROUTE # 1

In the case RIL becomes a MVNO, OR, takes over a existing GSM or CDMA operator

Target

1. Attract the high ARPU data customers - which will be driven through dongles, tablets and can have potentially good traction based on entry price etc

2. Attract high ARPU voice customers who potentially use data on their handset - which will have limited traction.

Reason being

a. Limited number of customers appreciate high speed on mobile(especially 4G)

b. If entry barrier is -change operator + buy new high priced handset to enjoy high speed - will it get traction

Hence customer lag might win here and we might see a very small niche enthusiast adopting RIL 4G

ROUTE 2

RIL become a bulk seller of 4G data to both CDMA and GSM operators

RIL will continue to attract high ARPU data customers and will ALSO DE-RISK the option to acquire high ARPU users of different carriers - who potentially can use 4G on their handsets

Will existing carriers be interested in this deal(ROUTE 2) ?

Yes - because by that time 3G will bleed them and they would not be willing to risk high capex in setting up a owned 4G network immediately

We have already seen carriers resorting to intra circle roaming agreements to save on CAPEX and this will be a logical step forward

Also because none of existing carriers(except AIRCEL) has a BWA license as of now, and with exception of BHARTI, I do not see others getting into it

either

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RIL may need more spectrum to offer high-speed Net service

Source

Infotel Broadband, the telecom unit of billionaire Mukesh Ambani-controlled Reliance Industries Ltd (RIL), may have to acquire additional spectrum for its soon-to-be launched wireless broadband services, according to a brokerage. The firm plans to roll out TD-LTE (time division-long term evolution) standard-based, high-speed Internet services by the end of this year.

"RIL will have to acquire additional spectrum in the lower spectrum bands or acquire an existing wireless operator with CDMA EV-DO (code division multiple access, evolution-data optimized) or 3G (third-generation) GSM spectrum to provide uninterrupted wireless data services as LTE-TD is not suited for coverage outside dense urban markets," Sameer Naringrekar, an analyst with BNP Paribas Securities (Asia), said in a 14 June note to clients. The acquisition will also enable it to provide better voice services, the report said. CDMA EV-DO and GSM are wireless technology standards.

RIL did not respond to an emailed questionnaire seeking comment.

In June 2010, RIL bought 95% of Infotel Broadband for Rs.4,800 crore. The acquired firm was the only one to win 20MHz of broadband wireless access (BWA) spectrum across the country in the broadband airwaves auction for Rs.12,847 crore.

"RIL may also benefit by leveraging the tower and national fibre network of an existing telecom operator to shorten the time-to-market for its BWA services. The biggest challenge faced by RIL will be to develop the ecosystem of LTE end-user devices to ensure that prices are affordable to drive widespread adoption. RIL has experience in developing ecosystems of affordable end devices as witnessed during the launch of Reliance Communication (formerly Reliance Infocomm), which was incubated by RIL," the report said, referring to the period prior to the split between the Ambani siblings, Anil and Mukesh.

A number of analysts have confirmed that RIL is looking at entering the market with low-cost pad-like devices that will be able to offer a number of mobile services including streaming of media and entertainment content and commercial transactions.

One Mumbai-based analyst, who declined to be named, said RIL could even offer eight-inch touchscreen tablet devices connected to their BWA network. "They are in talks with some 13 or 14 manufacturers based out of Taiwan. The tablets are expected to cost between Rs.8,000 and Rs.10,000," he said. "The data plans would also be cheap, I assume, maybe around Rs.1,000 per month."

The TD-LTE technology used by Infotel is expected to provide upto 100Mbps download speeds and 50Mbps upload over the airwaves.

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Reliance Industries conducting due diligence on Aircel, may make offer for controlling stake

Source - The Economic TImes

MUMBAI: Billionaire Mukesh Ambani-controlled Reliance Industries is conducting an advanced due diligence exercise on telecom services provider Aircel, three people said on condition of anonymity. Reliance Industries has completed atleast three rounds of due diligence on Aircel and may offer to buy a controlling stake in the company if talks between the two sides result in a deal.

Reliance Industries marked its foray into the telecom sector by acquiring Infotel Broadband for close to $1 billion last year giving it broadband wireless access licenses in 22 circles across India.

A spokesperson for Reliance Industries denied any such move. An Aircel Spokesperson said in response to queries from ET Now, "This is a baseless rumour and a mere speculative report".

People familiar with the ongoing due diligence exercise said Reliance Industries is formulating a plan to expand its basket of services to include both voice as well as data services and is keen to buy a telecom services provider which will give it access to much required back-end infrastructure as well as a large customer base which it could put to good use for its broadband roll-out.

Aircel has close to 60 million customers and 2G spectrum licenses to operate in 22 circles across India. The company also acquired 3G licenses in 13 circles and Broadband Wireless Access licenses in 8 circles in India.

Aircel had revenues of Rs 5600 crore for the calendar year 2010 and posted a net loss of Rs 260 cr for the same period. The company is likely to have total debt of close to Rs 17,000 crore this year.

Malaysia's Maxis Communications Berhad owns a 74% stake in Aircel and has been in talks with multiple global as well as local telecom players to divest its holding in the company according to people close to the group but has so far failed to arrive at a deal due to differences in valuation expectations.

Maxis is owned by a Malaysian billionaire Tatparanandam Ananda Krishnan.

Aircel sold 17500 telecom towers to Manoj Tirodkar-controlled GTL Infrastructure for close to $2 billion early last year in a deal that included commitments by Aircel to use GTL's tower network for its services.

GTL derives more than 50% of its revenues from Aircel.

One of the people quoted above said that Maxis may still be keen to provide services in India through the Mobile Virtual Network Operator (MVNO) route but does not want to own the telecom infrastructure or spectrum that have burdened it with high operating costs.

A Mobile Virtual Network Operator buys network from other operators who own spectrum and the associated infrastructure to provide services to its customers.

There are currently regulatory restrictions in India for telecom companies to operate as MVNO's.

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It seems Mukeshbhai has started the preparation seriously for year end launch..

DoT May Soon Allow Unlimited Calls Via Internet

Source

Net telephony will open domestic voice market to broadband players like Reliance Infotel

NEW DELHI, JULY 21:

The Department of Telecom (DoT) is considering opening up the Internet telephony segment and allowing unrestricted calls by consumers using their Internet connections.

According to senior officials in the department, this may be included in the New Telecom Policy expected to be finalised by November.

"We have received representations from the industry and from within the DoT to open up Net telephony. We are seriously looking at how to go about it," said a top DoT official. The issue was also discussed at a July 13 meeting with Indian Telecom Services officers.

In 2008, the Telecom Regulatory Authority of India had made a recommendation to allow unrestricted Net telephony to all operators including Internet Service Providers (ISPs), without imposing any additional entry fee or licence charges. However, the DoT had rejected the proposal at that time on grounds that it would disturb the level playing field with incumbent mobile operators that have paid Rs 1,650 crore as entry fee. But now the DoT is having a rethink since it is reviewing the telecom policy in its entirety.

If unrestricted Net telephony is allowed, it will enable players such as the Mukesh Ambani-promoted Reliance Infotel, which recently bought broadband wireless access spectrum, to offer voice services along with data. Reliance Infotel had bought the spectrum on an ISP licence. Under existing rules, only operators with unified access services licence are allowed to offer unrestricted

Net telephony. However, none of the players, including Airtel, Vodafone and Idea Cellular, has launched it in India probably fearing losing their traditional minutes-based voice revenue.

Operators without unified access licence are allowed to offer Net telephony services for international calling and PC-to-PC domestic calls. Removing the restrictions will allow all the broadband players who are rolling out fourth generation (4G) technology based networks to compete in the voice market. It will also provide Internet companies such as Sify, Tulip Telecom and Net4India an opportunity to offer consumers both long-distance and local calls. This could also force the incumbent mobile players to launch the service. If that happens services such as Google Voice and Skype would be available on mobile phones.

AWAITING DETAILS

But an Internet industry representative said that the devil could be in the detail. "The DoT may impose conditions which could range from an entry fee or net worth of the company, which will keep out the small ISPs from entering this segment. We have to see the fineprint of the policy whenever it gets finalised," said an ISP industry executive.

How Net telephony works

Currently, Net telephony is allowed only for computer-to-computer or international calls. Operators with unified access licence are allowed to offer domestic calls also but so far no one has launched it.

If the DoT opens up the Net telephony sector, then all the operators, including ISPs, will be able to offer the service on any device with which one can access the Internet. It may be a PC or a laptop with a headset, a Web-enabled mobile phone such as smart phone or one with GPRS or 3G connectivity. To access the service, subscribers need just buy a Net phone package from a service provider and download a dialler software on the device. With this software, consumers will be able to call other Net phone subscribers, a cellular phone user or a fixed-line telephone user anywhere in the country.

If one does not want to invest in a PC or an Internet-enabled mobile phone, one can also use a normal fixed-line telephone to make calls over the Internet. In this case too, subscribers will have to buy a pre-paid Net telephony card which works just like the long-distance calling cards currently available in the market.

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RIL, Siemens Join Hands To Develop Electronic Security Systems Using 4G Network

Monday, September 19, 2011, 18:29

Source

New Delhi: Reliance Industries, the nation's largest private company, Monday said it has signed an agreement with Siemens to jointly develop intelligent electronic security solutions for homeland security.

Reliance Security Solutions, a subsidiary of RIL, and Siemens signed a Memorandum of Understanding (MoU) to jointly develop solutions for "safe, secure and smart cities and highways in India," a company press statement said.

The Indian security market is expected to be one of the largest growing markets in the world over the next decade and this initiative will result in India joining a select set of advanced nations which are beginning to use 4G wireless networks for law enforcement purposes.

"The role of surveillance and security has assumed a greater level of importance, considering the fact that insurgency and terrorism has become a global phenomenon.

"With the traditional security platforms being inadequate to address these new challenges, there is a emerging need to move over to intelligent electronic security solutions," it said.

With its contiguous pan-India broadband wireless access spectrum, RIL plans to offer fourth generation (4G) wireless networking services for safety, security and other advanced applications.

"Reliance and Siemens will combine to leverage the 4G network for the low-latency and assured quality of service (QoS) required for video and security applications," it said.

The company said it has designed and operates the world's largest integrated security automation system consisting of over 12,000 cameras apart from tens of thousands of other advanced security sensors, radars, and video analytics among others.

It has implemented advanced command and control centres for security of its own critical infrastructure for more than a decade.

Siemens Building Technologies, a division of Siemens, presents the world's most advanced security solution - 'Siveillance'.

"Siemens Siveillance is the industry's most comprehensive security suite of solutions integrating intelligent video surveillance and command and control providing customers with one single management platform for all their security demands," the statement said.

It transforms traditional security into an intelligent environment providing automated threat detection based on smart algorithms and advanced command and control capability to manage incidents with a high degree of precision.

Siveillance ensures protection for critical infrastructure, cities and for the people within.

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Let me add a few bits. Go back in history - one of the triggers of the MDA - ADA split was RCom, which MDA floated and wanted while ADA opposed. In the split it had to be RIL & the rest. SO ADA got RCom. Once they decided to scrap the no contest agreement the MDA into Telecom was always on the cards. He bought 4G, again a cause for further action. Now by all accounts amity has been restored. So the options are - ADA's RCom pairing with MDA for integrated services, MDA buying in a big way into RCom, or MDA buying out someone else or setting up his own shop. I will bet on a ADA-MDA tie up in some form.

Let is accept that the RCom backbone is world class.

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Reliance To Launch 4G Broadband By December

Source

2999_1.jpg

COAI director general Rajan S Mathews has confirmed that RIL is going to launch its BWA network by December and other operators like Airtel will start offering services by March 2012.

A great deal of secrecy has been maintained by Reliance Industries about its 4G plans. But the director general of COAI (Cellular Operators Association of India) Rajan S Mathews has confirmed that Reliance is going ahead with plans to launch its network starting December this year.

Speaking to The Mobile Indian, Mathews said, "First BWA network roll-out will happen by December this year, with Reliance Industries taking the lead, followed by operators like Airtel and others who will launch the service by the first quarter of 2012 (December to March)."

He added, "The choice of technology is LTE, but with security clearance and lack of devices for LTE, the launch plans have not been announced so far. However, most of these issues have been resolved and the roll-outs will commence shortly."

Both LTE and WiMax, called 4G or BWA technology, offer very high speed wireless broadband access at theoretical speeds greater than 100 Mbps; while users can access real speeds of 10 Mbps on these networks. What is also good is the fact that LTE is backward compatible with both GSM and CDMA networks.

During the BWA (broadband wireless access) spectrum auction held in June this year, Infotel Broadband Services (now owned by Reliance Industries) won licenses for 22 circles while Aircel won eight, and Bharti Airtel and Qualcomm won four circles each, Tikona won five and Augere managed one.

So far no operator except Qualcomm (which is a technology vendor and participated only to ensure support for LTE technology) has made the choice of technology clear. However, LTE is clearly the more preferred of the two 4G technologies. WiMax is the other but it is losing out to LTE as some established WiMax players like Sprint in the USA are moving to LTE.

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:previous: hope it brings in the tariff war even for wired broadband. if they are able to replicate the launch of RCOM then wonderful. it should be reasonable and should not try to milk customers.

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RIL plans broadband rollout plans with 'Operation Vijay'

Monday, Oct 03, 2011 at 23:20 - MoneyControl.com

Over a year after shocking everyone with a USD 3 billion purchase of a nationwide license to offer fourth generation wireless broadband in India, Mukesh Ambani's Reliance Industries is putting in place the building blocks for a nationwide rollout that it hopes will surpass the voice services rollout of a decade ago, reports CNBC-TV18’s Ashwin Mohan.

Less than a decade ago - Reliance uncorked ‘Operation Genie’ with a limited mobile voice service that priced calls at 40 paisa a minute. That service was launched by Mukesh and the late Pramod Mahajan. Anil Ambani was not present at the launch ceremony and the group was yet to split.

Cut to now: The two brothers have called a cease fire and decided to compete in select businesses.

That is the genesis of yet another Mukesh Ambani operation - this time named "Vijay" or victory. Although, it is yet to be formally unveiled, insiders suggest that the tent poles of the broadband network are being put in place.

RIL spent USD 2.8 billion to buy a 95% stake in Infotel Broadband. It is now investing a near similar amount in the services rollout. While details on the technology architecture and related elements are yet to become public, insiders suggest that the service will be extremely "affordable" - even more than third-generation services that are available currently.

Why? While the average cost of 3G spectrum acquired by mobile operators works out to 32 cents per person per Mhz, RIL acquired competing spectrum at nearly one-sixth of the price.

That, along with RIL's famed project skills and financial muscle, should ensure that the service lives up to its proposed tagline: Easy to Access, Simple to Use, Available to Everyone.

In effect, while all existing mobile operators are working towards a gradual increase in tariffs to improve margins, big daddy Mukesh may just end up spoiling the pool party. Will Anil Ambani be watching from the sidelines or will it be a family victory?

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Mukesh Ambani readies plans to roll out 4G data services, low cost tablets in 2012

Joji Thomas Philip & Himangshu Watts, ET Bureau | Oct 17, 2011, 01.40PM IST

Source: TOI

NEW DELHI: Mukesh Ambani's Reliance Industries plans to offer high-speed data services on attractively priced tablets by early next year and scale it up to a countrywide network by the middle of 2012.

The company, which made a comeback to telecom last year, plans to offer fourth-generation or 4G-enabled data cards that can be plugged into computers and laptops, apart from providing tablets at a game-changing price of 3,000 or even lower to hook customers, two executives familiar with the development said.

RIL has also initiated talks with media and entertainment companies, including Walt Disney's Indian venture UTV Software, to acquire content for its wireless broadband offerings. A deal with Walt Disney, which is close to being finalised, will enable the company to offer games, entertainment and applications for the younger customers.

It plans to provide data connectivity with speeds of 50-100 Mbps, much faster than 3G services currently on offer, at cheaper prices.

The strategy of enticing customers with low prices is similar to the move in 2003, when it took mobile telephony to the masses with its 'Monsoon Hungama' handsets at 501, helping it win 1 million customers in just 10 days.

Reliance Infocom, the telecom arm of the undivided Reliance Group, began its services on December 28, 2002, the birthday of the group's founder Dhirubhai Ambani. The company, now known as Reliance Communications, is owned Anil Ambani, the younger brother of Mukesh.

RIL has acquired Infotel, a company that won pan-India spectrum for broadband wireless access last year and plans full-scale commercial operations by mid-2012. By then, it expects to have its networks ready across 700 cities, one of the executives said. Neither wanted to be identified. The company will also gradually offer much higher speeds for data transfer on its network. It has considered a soft launch as early as December, one source said.

Reliance is working overtime to make a success out of its latest venture, which it hopes will boost investor confidence that has been battered by harsh criticism from the Comptroller and Auditor General. The company's other initiatives, such as retail, continue to be small blips in its balance sheet while its gas production has declined because of reservoir complexity.

The company's spokesman declined comment on specifics of its broadband plans saying Reliance would not comment on speculation. But in an update on its telecoms business, Reliance said on Friday that its telecom unit was "in the process of setting up a world-class broadband wireless network using state-of-the-art technologies and finalising the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India".

The company is learnt to be in the final phase of talks with three vendors - Alcatel Lucent, Ericsson and China's Huawei - for its broadband gear after finishing trials with equipment provided by all the three. It is not clear if RIL will go with a single vendor or split the contracts between the three, said executives with gearmakers aware of the ongoing talks.

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Reliance (RIL) MAY form Joint Venture with Reliance Communications to launch cheaper tablets

NDTV Correspondent, November 2, 2011, (Mumbai)

Mukesh Ambani-led Reliance Industries is likely to join hands with Anil Ambani’s Reliance Communication (RCom) in a bid to launch cheaper tablet devices for Rs. 6,000 a piece. Reliance may use RCom’s towers and fiber optic cables to offer high-speed data services. This will be the first major collaboration between the brothers after their spilt in 2005.

This deal, however, will not involve any equity investment by Reliance in RCom.

Besides using towers, Reliance will also use RCom’s transmission facilities like domestic and global long distance networks to carry its data traffic. The partnership will allow Reliance to access around 50,000 towers of Reliance Communications from 1,500 cities in the country.

Reliance is also planning to source GSM-based voice services from Reliance Communications in order to provide them through bundled deals to its data customers.

The Ambani brothers had terminated an incomplete agreement in May 2010, which had been in place for five years, permitting Reliance Industries to mark a re-entry into telecom. Later, Reliance became the only company to acquire licenses for wireless broadband services across the nation for Rs. 13,000 crore.

Shares of Reliance Communication were up 2.26% at Rs. 79.15 on the BSE.

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As predicted by me RIL will ride on the RCom backbone..

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another very interesting news is that RIL has roped in Mathew Oomen, who was CTO at Sprint Nextel

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MDA will find out ways to bundle voice with data somehow. That's going to be a lethal combo with superfast LTE data.

After a long time, something exciting is going to happen. Can't wait for December 2011

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