Reliance Communication To Enter Gsm Services

[abhay 0]

Anil Ambani wants GSM spectrum for 21 circles

Anil Dhirubhai Ambani Group’s Reliance Communications Ltd (RCL) has now applied for GSM spectrum in 21 out of a total 23 telecom circles in the country. It had applied for just six states earlier.

RCL’s expansion in GSM started with its differences with CDMA’s global patents holder Qualcomm over a reduction in the royalty rate on handsets, which still remains unresolved.

RCL’s applications made to the wireless planning and coordination wing of the DoT are under the provisions of the unified access service licence, which allows the company to provide mobile services irrespective of technology.

DoT officials said they had received some documents from the company but had not gone through them yet. Earlier, the DoT had asked RCL to submit a detailed plan with regard to foraying into GSM services. But the company had not done that so far, DoT sources said.

The DoT had also informed RCL that due to a spectrum crunch, the company would have to surrender some of its CDMA frequencies if it wanted the GSM spectrum.

RCL’s subsidiary, Reliance Telecom Ltd, currently provides GSM cellular services in Madhya Pradesh, Himachal Pradesh, Bihar, West Bengal, Orissa, Assam and the Northeast, and has about 2.85 million subscribers.

When contacted, RCL executives said the application for GSM spectrum was in step with the company’s enhanced focus on GSM.

http://www.financialexpress.com/fe_full_st...ntent_id=139773

[petar 15]

new mantra under Anil.

karlo INDIA mutthi mein....

[vmsanghrajka 0]

Great news!! If everything goes swiftly then... Reliance GSM is jus 1 / 1.5 year(s) away..

cheers!!

[petar 15]

U mean FULL-FLEDGED GSM.

cause inside story is that... they are in position to roll out GSM in mumbai & delhi.. within one month from obtaining necesary licenses/permission.

[linuxguy 0]

petar, how do u know that? I am hopeful that Reliance will launch a very dirty tariff war and Mumbai users will get SOME respite from high end tariffs

[abhay 0]

petar, how do u know that? I am hopeful that Reliance will launch a very dirty tariff war and Mumbai users will get SOME respite from high end tariffs

don't expect a similar DROP in rates as when reliance infocomm had launched

here the scenario is different

1) here the rates are almost*** rock bottom

*** i dint say rock bottom !! i explicitly mentioned almost !! ROCK BOTTOM for me is unlimited talktime any network all over India for a fixed monthly rental

[petar 15]

i know because i hrd some Reliance staff members discuss the issue @ 5 start hotel.

It seems they have already got the qoutes of all equipment from vendors. They have identified all locations for Base stations.

As for distribution network - they already have Webworlds, WW express & Reliance dealer shops.

Man, i cant wait for GSM services... Hate this stupid LG handsets..

[Arun 795]

Why Anil Ambani wants to ride two horses in telecom

Nivedita Mookerji for DNA India

New Delhi: Friday, September 08, 2006 - 23:29 IST

It happened almost simultaneously. Just when Reliance Communications applied to the government for a pan-India GSM spectrum, it announced a mega deal with Nokia for two million CDMA handsets.

The two parallel developments have sent out mixed signals to the industry on whether Anil Ambani’s Reliance Communications, which is the leading CDMA player with around 23 million subscribers, is interested in GSM or CDMA or both.

A few months ago, the company had applied for spectrum in six circles to operate GSM (global system for mobile communications) service. But it has now upped the ante by applying for a pan-India GSM presence, except in two circles (north-east and Assam).

Reliance maintains that it is “committed to pursue the world’s leading mobile technologies, whether CDMA or GSM, to provide the best and competitive services to our many million customers”. Reliance Communications runs GSM services through a subsidiary, Reliance Telecom.

Will Reliance then ride two horses at the same time? A source in the GSM camp said that Reliance may progressively tone down the CDMA focus. The company may target additional growth in GSM, he said.

Over a period of time, it may even look at shifting its CDMA subscriber base to the GSM platform, the source added.

Subsequently, introduction of dual mode world-phones (common for GSM and CDMA) in India will make things easier, he claimed. Another industry insider, however, argued that Reliance would not leave CDMA, where it has such a strong subscriber base.

“A dealer who sells all kinds of products is the best dealer,” he said. The company’s aim seems to be to multiply faster than others so that it becomes the top player in the country.

There are four reasons for Reliance’s strategy shift. One, thanks to handset limitations, higher-end users tend to prefer GSM, especially since international roaming is better on GSM.

Two, GSM operators continue to bill about 40% more than CDMA subscribers, indicating that they have better pricing power.

Three, by offering both CDMA and GSM, Reliance can design different schemes targeting different segments of the market.

And for, GSM is by far the dominant technology worldwide and in India, outnumbering CDMA 2.5:1 in India.

The evidence from circles where Reliance offers both CDMA and GSM suggests that one does not cannibalise the other. In the six circles where both are available (MP, West Bengal, Kolkata, Bihar, Orissa and Himachal), Reliance has 3.5 million subscribers and 2.1 million GSM ones.

The GSM subscriber base is much higher, both in India and globally, thereby making it logical for Reliance Communications to focus on GSM technology, according to PricewaterhouseCoopers’ associate director Arpita Pal Agrawal.

“The economies of scale are much better in the case of GSM,” she said. She also pointed out that while CDMA is very effective for high-speed data applications, the current Reliance base includes a large number of low-cost customers.

As for government policy, a senior official in the department of telecommunications (DoT) told DNA Money that “licences are technology neutral”.

He gave this reply when asked whether Reliance required to surrender some of its CDMA spectrum to expand in the GSM space. However, there are concerns within the government and the industry over the additional spectrum allocation sought, as spectrum is considered a scarce resource.

Also, a senior representative of DoT recently told the media, “the government policy is not to shut doors (on any player)”. He added that BSNL and MTNL also offered both GSM and CDMA in some common circles.

Interestingly, Reliance Communications is learnt to have told DoT recently that its decision to expand in GSM is linked to government’s teledensity target.

The company indicated that it aimed to have the largest marketshare in the Indian telecom sector by 2010 end, and that it must opt for GSM expansion to reach there, according to sources.

While communications minister Dayanidhi Maran has set a target of 250 million phone connections by the end of 2007 and 500 million by the end of 2010, Reliance Communications is understood to be eyeing anything between 110 million and 125 million subscribers by then, representing a marketshare of around 25%.

Even as the CDMA growth has been robust, in terms of absolute numbers it is nowhere near GSM. As against 1,820 million GSM users across the world as of March, 2006, CDMA had only 250 million subscribers, excluding the 3G user base.

If 3G users are taken into account, the GSM base has crossed 2 billion and CDMA 318 million.

In India, GSM is way ahead with 86.6 million users, while CDMA has managed over 35 million, including its wireline and fixed wireless subscribers.

GSM players in India include Bharti, Hutch, Idea and BSNL, while Reliance Telecom has over 2 million GSM users in eight circles. CDMA is represented mainly by Reliance Communications and Tata Teleservices.

From December, 2001, to December, 2002, the CDMA base in India grew 125%, against 92.5% in GSM during the corresponding period. From December, 2002, to December, 2003, CDMA recorded a growth of 800% against 110.5% in GSM.

(It was in December, 2002, that Reliance launched its CDMA service). From December, 2003, to 2004, the CDMA growth rate was 75.3%, against 70.3% in GSM. From December, 2004, to 2005, CDMA showed a growth of 76%, against 56.8% in GSM. However, from December, 2005, to May, 2006, the CDMA growth rate has been lower at 26% against 28.5 per cent in GSM.

Global numbers also indicate a better growth trajectory for CDMA, as opposed to GSM.

From the fourth quarter of 2001 to the corresponding period in 2002, CDMA growth rate was 819.4% against 46.3% in GSM. From Q4 of 2002 to Q4 of 2003, CDMA recorded a growth rate of 158%, against 25% in GSM.

From Q4 of 2003 to Q4 of 2004, the global CDMA user base grew 70.9% against 28% in GSM. From Q4 of 2004 to Q4 of 2005, the CDMA growth rate was 54.1% against 31.8% in GSM.

From the fourth quarter of 2005 to the end of first quarter of 2006, the CDMA growth rate was 11.2% against 6.4% in GSM. The 3G figures have not been taken into account for calculating the global growth rate in GSM and CDMA.

[kawalghai_chd 0]

Business Standard:

Saturday, September 08, 2006

Reliance Communications, the largest CDMA-based service provider in the country, has reportedly applied to the Department of Telecommunications (DoT) for GSM spectrum in 21 out of the 23 telecom circles in the country, under the Unified Access Service License (UASL).

In February, the company had applied for GSM spectrum in the circles of Delhi, Mumbai, Chennai, Uttar Pradesh (East and West circles), and Jammu and Kashmir. The latest is a fresh application, wherein the company is seeking GSM spectrum in all the remaining circles to launch a nation-wide GSM network.

Reliance Communications already provides GSM cellular services in circles including Madhya Pradesh, Himachal Pradesh, Bihar, West Bengal, Orissa, Assam, and the North East, with a total subscriber base of around 2.85 million.

As regards the latest application, DoT officials say they will look into it only when Reliance submits a detailed business plan with regard to foraying into GSM services, which the company has apparently not done so far.

DoT has also informed Reliance that due to a spectrum crunch, the latter will have to surrender some of its CDMA frequency in order to get GSM spectrum in exchange.

To this, Reliance has responded saying that their latest move is very much in-sync with their enhanced focus on GSM, but that it is equally clear that they will continue their emphasis on CDMA, while looking at deploying GSM for future expansion.

According to Reliance, this is very much what is being done by other global CDMA operators

[kawalghai_chd 0]

Reliance Confirms Gsm Plans

TeleGeography - Washington

India's Reliance Communications has confirmed that it has applied to the Department of Telecommunications (DoT) for GSM spectrum in 21 of the country's 23 telecoms circles. Reliance offers CDMA services in twenty circles, and GSM services in eight, mainly in the east of the country. The application for more GSM spectrum comes amid increasing complaints from Reliance about the level of royalties it pays Qualcomm for the purchase of CDMA handsets, arguing that high costs have restricted its ability to compete with operators offering cut price GSM handsets. It has applied for permission to roll out GSM networks in some regions where it already offers CDMA services.

[vmsanghrajka 0]

By what i understand, reliance will continue CDMA for its landline and current users.. However, it will pursure aggressively for GSM mobile.. Also, it might give some great deals to current CDMA customers to convert into GSM..

cheers!

[linuxguy 0]

when is it starting?

[vmsanghrajka 0]

No one knows tht.. But ADA is believed 2 b very serious abt GSM roll out asap.. I think it should be up in years time in mumbai..

cheers!!

[vmsanghrajka 0]

New Delhi, September 14: India's top CDMA-based mobile services provider, Reliance Communications Ltd, said on Thursday it had sought 3G spectrum from the government to test services and equipment.

Reliance's move comes after India allowed four major carriers, including top-ranked Bharti Airtel Ltd, to conduct indoor trials of third-generation mobile services.

A Reliance official said the firm had sought 3G spectrum for 13 of the 23 circles or zones that make up India's mobile industry, the world's fastest-growing wireless services market.

Carriers can offer services such as faster Internet access, movies on demand and high-end online gaming on the 3G spectrum.

Reliance Communications also offers mobile facilities based on the GSM platform.

Soaring growth has led to a paucity of bandwidth in large cities. Carriers have requested the government to allot fresh frequencies in 3G and other bands to ease congestion. At present most of the spectrum is issued for 2G and 2.5G band as India remains a predominantly voice market.

But companies are ramping up high margin value added services as voice tariffs, already the lowest in the world, are commoditised.

Carriers that were issued 3G spectrum earlier for tests include state-run telecoms firms Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd, and private firms Bharti Airtel, 30.8 per cent owned by Singapore Telecommunications Ltd, and Hutchison Essar Ltd.

India plans to allot spectrum for 3G band later this year, and has appointed a panel to look into pricing and allocation. The ministry has not set a dateline for the launch of 3G services.

Shares in Reliance Communications were down 1.17 per cent at Rs 321 in a firm Mumbai market.

Source: REUTERS

[linuxguy 0]

no official word from Reliance?

[@ksh@T 20]

thats the only problem with reliance

[kshah 452]

I think GSM from reliance will be good for all. Customers and reliance. Customer get benefitted on handset part, roaming and technology areas. Company get benefitted by reduced inventory and warehousing costs (Hadsets occupies more space than just SIM), will be able to attract high end users.

3G is going to remain dream for Indian customer as 3G handsets are and will remain very expensive due to royalty issues atleast for another 3-5 years. In the mean time Wi-Fi, WI-max will be economical to service customer data needs.

I think reliance will concentrate on GSM for voice and use CDMA network for then data needs and lowed custmer needs as CDMA is cheaper to operate because of spectrum efficiency.

[Arun 795]

GSM costs lure Reliance Communications

Business Standard

Surajeet Das Gupta / New Delhi September 25, 2006

Reliance Communications has said GSM equipment and handset prices are cheaper than CDMA.

Reliance Communications, part of the Reliance Anil Dhirubhai Ambani Group, has cited cheaper equipment and handset prices for the next 300 million of its subscribers in India as the key reason for shifting of its focus to GSM.

It has also hinted that of the incremental $900 million capital expenditure in wireless telecom services, which the company will make next year, a large chunk could go towards building GSM networks.

The company has also pointed out that it does not see any dip in its earnings before interest, taxes, depreciation and amortisation (EBIDTA) margins due to the shift in focus from CDMA to GSM and that these would remain within the 35-40 per cent range.

The company and Anil Ambani have made these observations at various meetings with equity analysts and investors across the globe. The group had kept its plans to move into GSM under wraps.

It recently made an application to the department of telecommunications for GSM spectrum across the country. When contacted, a Reliance Communications spokesperson declined to comment on the issue.

However, the broad contours of the strategic reasoning behind the move can be gauged from various discussions that analysts have had with top executives, including Ambani, recently.

Raising concerns about Qualcomm’s policies (as it is a key reason for the high CDMA costs), the company, including Ambani, in its discussions with analysts has pointed out that the CDMA handset ecosystem has many challenges and the Qualcomm approach in no way helps them to bring down the affordability index for millions of customers.

The challenges they face with Qualcomm include issues of royalty, chipsets and whether they can deliver value and low-cost solutions.

It has argued that this has been a key reason why many operators have efficiently migrated to GSM platforms.

In his submissions to analysts, Ambani, when questioned about whether it was possible to run two different kinds of networks (CDMA and GSM) in the same market, reiterated that in the seven circles in India where Reliance Communications currently operates GSM and CDMA, subscribers are equally divided between the two. The company has 2 million subscribers each in GSM and CDMA networks in these circles.

Ambani has also pointed out that customers are technology neutral and they buy a service for its coverage, tariff and quality, and not because it is CDMA or GSM.

Reliance has also pointed out at that the spectrum situation is not as dismal as it seems and is limited only to the top 20 cities. And even here the government will be releasing a big chunk.

[Arun 795]

Reliance Communications seeking virtual networks ?

2006-10-03 21:24 Source : MoneyControl.com

CNBC-TV18 has learnt that Ambani junior is evaluating the option of a virtual network, where Reliance provides mobile services without investing in networks or spectrum. But, as of now, this isn't allowed, reports CNBC-TV18.

This will be an entry into a virgin territory for Reliance Communications. CNBC-TV18 learns that the company is evaluating the option of being a mobile virtual network operator or an MVNO like Virgin Mobile. An MVNO essentially offers telecom services without owning network infrastructure or spectrum.

It involves a marketing and branding outfit, which buys airtime from an existing mobile operator and sells it to customers. It is important to note here that current regulations in India do not permit offering such services.

But if the government has a change of heart, RCL is likely to benefit, as they will then not need to invest in a GSM network ahead of their proposed GSM foray.

The company can then focus on just marketing and retailing. Incidentally, Reliance Communications isn't the only company dialing the MVNO route. The Modi group owned Spice Communications, which has applied for GSM spectrum in 21 circles also has similar plans.

VC, Spice Communications, Dilip Modi said, 'We would want to do it through the MVNO route.'

But regulatory clearance will hold the key to Anil Ambani's new strategy. If The DoT sticks to its current stand, Ambani's plans will meet the same fate as Richard Branson owned Virgin Mobile's India plans.

CNBC-TV18 learns that the department is under pressure to have a re-look. In fact, The Investment Commission headed by Ratan Tata has recommended that MVNOs be allowed in India. This recommendation even has the backing of the Department of Economic Affairs.

Telecom is increasingly becoming a commoditisied low margin play and with constant changes in technology, RCL may well want to put its money on talk time and not infrastructure. CNBC-TV18 also learns that RCL will be going in for a complete brand makeover. So watch out for a change in colours and maybe even the logo !

[jusmail 0]

Seems to be a smart move.... and they sure know how to turn on the pressure cooker to get things moving

[vmsanghrajka 0]

It ll take another 2 year for regulator clarification n approvals.. so till thn wait

cheers!!!

[smartbuddy_82 0]

Reliance knows how to get things out of Govt Fast....

They will sure turn tables of the Govt...

[linuxguy 0]

RCL's new logo was a bad idea in the first place. Lets see what reliance does now

[abhay 0]

these days RCl is just planning and giving statements

we wanna shift to GSM , we wanna share infrastructure , we wanna have virtual networks , we wanna expand to other countries , we wanna do this and we wanna do that!!

but the main ? is when are they gonna do what ever they wanna do ?????

by the time RCL does something i think bharti will take away the piece of cake

Edited October 7, 2006 by abhay

[linuxguy 0]

abhay, agreed. i think RCL is now all talk and no action with ADA at the helm.