RCom places Rs 340-cr CDMA handset order with Huawei

Anil Ambani-led Reliance Communications has placed an estimated Rs 340-crore order with China's Huawei Technologies for two million CDMA handsets.

Company sources said the handsets are aimed at increasing Value-Added Services (VAS) usage across small cities (Tier II and III) and will also promote bundled VAS offerings as part of its sales push.

These handsets along with the free VAS bundle would be available at a price range between Rs 1,700-1,950.

When contacted, a RCom spokesperson confirmed that the company has placed a large CDMA handset order with Huawei but did not go into the specifics of the order.

"We are committed to offering best service offerings to our over 94 million wireless subscribers in India," the spokesperson said.

The move is part of RCom's plans to expand CDMA business.

Sources said the company's overall business strategy would be aimed at leveraging its GSM operations to drive horizontal growth, while the focus on CDMA business will be to increase value.

"With one full year of GSM behind us, we see horizontal growth to continue coming from GSM, while the value drivers will continue being CDMA and data," RCom CEO (Wireless Business) Syed Safawi said.

With average revenue per user (ARPUs) from voice services declining and tariff wars becoming the mainstay of the telecom voice business, RCom is leveraging data and VAS operations to drive its business value.