Sudesh Prasad

The endless wait for Reliance's retail broadband and IPTV services continue. There has been no formal announcement of the launch of consumer broadband services, renamed Broadnet. There is also confusion whether the services are available or not. It is a pity for Reliance Communication the way the entire project was envisioned-with claims to offer speeds of up to 100 mbps to millions of users. The ground reality after four years is that Reliance has around 65,000 broadband customers as of March 2006!

Broadnet Services
There are no visible signs of the services' launch (Enterprise broadband services are, however, available) even when Airtel and BSNL have lined up aggressive expansion plans. Some prospective broadband customers Voice&Data spoke to were clueless about the existence of Reliance's broadband services, or Broadnet. The most shocking (and ridiculous) was the fact that prospective customers were supposed to call up Mumbai customer care (022-30337777) to get services anywhere in the country. Even customer care representatives were clueless about the locations where Broadnet services are available. All Web Worlds, renamed Reliance World, were equally clueless. (Reliance Worlds have all the services being offered by Reliance Communications, and can, to some extent be equated to Sify's dedicated chain of cyber cafes, but with a variety of services like conferencing, e-ticketing etc).

IPTV Services
Apart from retail broadband, there is no clarity in the status of Reliance's tie up with Microsoft to offer Next-Generation IPTV services. Microsoft had offered its software platform combined with Alcatel's network infrastructure, services integration and operational support. This was announced exactly three years ago in 2003 but the trial, or pilot, continues without any outcome. Part of the blame also lies with Microsoft who promised to provide the software solution for IPTV services to Reliance Communication. Bill Gates, during his last visit to India, avoided a direct question asking about the status of Reliance's IPTV trials and about the launch of services. Globally, IPTV is far from being accepted as a mature technology. The total subscriber numbers is below 3 mn and is mostly concentrated in Europe. Out of Microsoft's 12 partners, only Cablevision Mexico and Comcast have been able to launch IPTV services till now. In a setback to Microsoft's IPTV plans, Telstra canceled the field test in Australia. Last year, Swiscomm, on the other hand, also postponed the commercial launch of its Bluewin TV service which was a major blow.

 The Reasons
According to the company's own admission in the investor presentation of March 2006, the “initial focus will be enterprise,” probably seeing little profitability in the retail business, given the low tariff and stiff competition from BSNL who are offering services at a dirt cheap price. Clearly, lack of a viable business model appears to be one of the most important reasons for the delay in going all out with its broadband services.

The dilemma of whether to continue with a mix of CDMA and GSM, or to entirely shift to GSM also had a role to play. As is obvious, all energies at Reliance appear to be directed towards mobile services. If current news reports are anything to go by, Reliance is planning to apply for license to operate GSM services. Added to all this was the split between the Ambani brothers, an important reason for delay due to the transition time lost in handing over the communications business to ADAG. According to sources, Reliance is looking at 2007 to launch its broadband services. So it is time to wait for yet another year.

 Source: Voice&Data