Reliance Comm seeks GSM entry

Delhi, Mumbai operations to require Rs 2,000 cr investment.

Reliance Communication Ventures Ltd (RCoVL) has sought permission from the department of telecommunications (DoT) for usage of the 1800 MHz frequency, a move that will enable the CDMA major to foray into the GSM space.

If this happens, the Anil Ambani group company will become the world's second largest company to offer services using both the technologies "" CDMA and GSM "" the other being China Unicom.

In a letter to DoT's wireless planning and coordination (WPC) wing, Reliance Communications sought the allocation of 4.4 MHz (under 1800 MHz GSM) for commencing GSM-based telephony services.

The company had sought permission for commencing services in Mumbai and Delhi, a source close to the development said.

According to the industry average, setting up full-scale GSM operations in Delhi and Mumbai will entail an investment of around Rs 2,000 crore. If permitted, the company intended to start operations immediately, he said. When contacted, Reliance Communications executives declined to comment.

At present, Reliance operates GSM services in the north-east through its subsidiary, Reliance Telecom, and has over 2 million GSM subscribers. According to industry analysts, Reliance Communications has been looking at shedding its "CDMA-major tag" and is looking at becoming a technology-neutral company.

The selection of the 1800 MHz frequency for further expansion is the "right decision" as it supports both CDMA and GSM telephony services and is ideal for a technology-neutral company.

At present, there are only a handful of companies offering services on both the CDMA and GSM platforms.

China Unicom is the largest company in this space, while India's state-owned BSNL and MTNL also offer services through both technologies.