Infocomm plans record 1 mn handsets order

Reliance Infocomm is planning to place order for 1 million mobile phone handsets in the next two months, which would be one of the largest orders by any telecom service provider in India, for which the company has initiated talks with global handset manufacturers like Nokia, LG and Samsung.

Reliance Infocomm, an Anil Dhirubhai Ambani Enterprises group (ADAE) firm, is expected to seal the deal "immediately". The need for a huge consignment is due to an increase in subscribers and expansion of services to newer geographies.

Sources said the handsets were in anticipation of Reliance Infocomm's network expansion in smaller cities, in addition to the requirement in existing circles.

The company has operations in over 3,750 towns, of which 3,500 small towns and talukas, while it has covered 1.40 lakh villages. Earlier this year, the company had procured 2 million handsets of different makes and this proposed new acquisition will take the total number of mobile phones purchased to 3 million in 2006.

This procurement is the largest in India due to the sheer size of the order, however this is not the largest in the world as China Mobile Xingjiang had placed similar orders earlier, while South Korea Telecom (SKT) was also looking at placing similar orders.

The company would procure various handsets, ranging from entry-level ones to the high-end TV and camera phones from different companies. This is to ensure availability of different models with an array of features and to suit wallets of all sizes, sources added.

The total outgo for the procurement could not be ascertained as Reliance Infocomm is believed to be spending around Rs 2,000 to Rs 20,000, depending on the make of the handset.

Reliance Infocomm is the largest telecom operator in the country with about 13 million subscribers and is adding with 4 - 5 lakh new users every month.