RCom plans on-network calls for GSM, CDMA

The stalemate on spectrum allocation not withstanding, Reliance Communications is planning to provide on-network calls that straddle its CDMA and GSM technologies.

The move is expected to be beneficial to the company's 5.4 million subscribers, who would be able to make calls at a cheaper rate.

Even though all operators provide on-network services, Reliance Communications will become the first company to provide it across the two technologies.

On-network calls are those that originate and terminate on a company's own network, and these services are offered at lower than normal call rates. This is because the operator does not have to pay handover (exchange of calls between one operator to another) and termination charges to another operator.

"Reliance Communications is close to rolling out on-network services in circles where it provides both CDMA and GSM technologies. The technology is available and the company is in advanced stages of finalising the tariffs, with an announcement expected by the end of this month," a source close to the development said.

Reliance Communications is a CDMA service provider with around 3.3 crore subscribers and operations in all the 22 circles in the country.

The company through its subsidiary Reliance Telecom also provides GSM services in eight circles - Himachal Pradesh, Madhya Pradesh, Orissa, West Bengal, Kolkata, the north east, Assam and Bihar.

When contacted a Reliance Communications spokesperson declined to comment on the development.

At present, the company offers CDMA services in most of the GSM circles it has operations in and services over 5.4 million customers.

The Telecom Regulatory Authority of India recently permitted usage of dual technology for providing telephony services in the country.

Meanwhile, Reliance Communications is planning to place an order for 70 million GSM lines that is valued at up to $5.6 billion. The order is likely to be placed sometime next year. Reliance Communications is in talks with Ericsson, Alcatel-Lucent and Motorola for the order.