Reliance Communications Readies $1 Billion War Chest For 3g Rollout

[Honest 836]

Economic Times l 23 December l Mumbai

Anil Ambani’s Reliance Communications (RCOM) has set aside $1 billion for its 3G (third generation) telecom services rollout.

The approximately Rs 4,700 crore investment in 3G, will be funded through RCOM’s internal cash reserves of Rs 12,000 crore.

Top ADAG officials confirmed the figures to ET, stating its 3G rollout will begin on the GSM (global systems for mobile communications) network, which is slated for a formal launch very soon. The GSM network is already being tested in Mumbai and the nation-wide rollout will be over by June next year.

RCOM officials also said that they were still debating on whether to bid for the 3G licence on a pan-India level or restrict it only to the five metros. “We are currently working out the financial dynamics. We will have a clearer picture in a week’s time,” he added. However, as of now RCOM is planning a pan-India rollout and is looking at covering the 50 top cities.

RCOM is aggressively scouting for a strategic partner who will help in 3G rollout. Korean Telecom company SKCC is reportedly said to be in talks with Reliance Communications for providing VAS for 3G, as well as IPTV. SK C&C president SK Yoon has said that the company is in-terested in leveraging its experience on the CDMA platform, and is eying acquisitions in India, as well as partnerships and joint ventures.

The 3G or third generation phones work in higher bandwidths of 15-20 MHz. Currently mobile phones work on 2G or 2.5G technologies. While 2G is focused on voice, 3G supports high-speed data of at least 144 kbps enabling broadband internet access on the mobile, and “triple play” features like mobile TV and converged communication services.

Currently, key operators are facing severe 2G spectrum crunch in top 20-30 cities which is hampering their future growth.

[KumaarShah 143]

So does this confirm that evdo will not see the light of the day? Sad state of affairs for cdma, although they are trying for a tie up with the korean giant in cdma itself.

[santhoshavanoor 7]

Now its the time to invent a technology, so CDMA mobiles can accept GSM signals. Is there any hope? I don't think so. 2009 is the end of CDMA technology? We will wait and see....

[srk006 21]

If each operator starts to select particular circles instead of a pan-India launch, 3G is going to be a BIG flop!

[srk006 21]

So does this confirm that evdo will not see the light of the day? Sad state of affairs for cdma, although they are trying for a tie up with the korean giant in cdma itself.

I feel EVDO will definitely come to India.

The auction for EVDO spectrum will happen soon after the allocation of 3G-GSM spectrum with the same price as that of 3G-GSM. Also there are spectrum for 2 operators in EVDO(One may be pre-alloted to BSNL) and the allocation is based on the number of subscribers(RCOM is No.1!! ). And if RCOM doesn't grab this opportunity Tata will definitely take this!! So CDMA is NOT going to die

[KumaarShah 143]

^^^

Lets wait and watch what RCOM and TATA does for EVDO!!!!!

[commonman 228]

BSNL has already started EVDO in several parts of the country. Now we only need to wait for them to enable roaming.

TATA has also started EVDO in Chennai.

Edited December 23, 2008 by commonman

[Honest 836]

My dear friends, I too think that Reliance will definetely interested in launching EVDO in the near future. If Reliance get the spectrum for EVDO then it will be in the favour of all its CDMA users.