Reliance might vacate its current CDMA spectrum for GSM roll out

Bhaskar Hazarika

NEW DELHI: Reliance

Communications Ventures Limited is looking at vacating its current CDMA

spectrum to get GSM to roll out its services in eight operations across the

country, says DoT sources.

The Department of Telecommunications (DoT) is seeking more details from

Reliance on their plans to expand its GSM services. The company has moved the

DoT for allocation of 4.4 Mhz spectrum.

DoT official sources today said that they have asked for more details on the

GSM roll out from Reliance. “We are seeking details on their expansion plans

as they have sought for allotment of GSM spectrum. As the operator is seeking

for GSM spectrum, it might have to vacate CDMA spectrum, for the allocation. It

is also likely that Reliance may completely switchover to GSM mode as they have

sought for GSM spectrum,” the source added.

The company had announced to start GSM

operations in Delhi and Mumbai. The company also plans to add between 10-12

million GSM lines with an estimated investment of over Rs 1500 Crore, to expand

its services in eight locations. Reliance is already in to talks with major

equipment vendors like Nokia, ZTE, and Motorola

for rolling out the GSM lines.

Satya N. Gupta, Advisor Converged Networks, Telecom regulatory Authority of

India said that a mobile operator can offer both the services in the same circle

but will have to apply for two different licenses. “Any service provider can

choose to offer both CDMA and GSM services in the same circle, but the important

question is the allocation of spectrum, which can be allotted only when its

available,” Gupta said.

When contacted Reliance, it denied to reveal any information about the GSM

expansion plans and said that it was under process. When asked about the

possible exit from CDMA business, Reliance officials said that they have 19

million CDMA subscribers and it is not possible to move these many subscribers

to GSM. Officials denied any such moves.

Under unified licenses we are entitled to provide both services, said

official.

But insiders say, one reason for vacating the CDMA mobile services could be

that offering GSM services allot 4.4 MHz of spectrum to an operator whereas, for

CDMA services only 2.5 MHz of spectrum is being released to operators.

According to DoT official, for each MHz, GSM can able to connect with one-lakh

connections. In the CDMA, this becomes four lakhs connections. However, the

infrastructure cost to put up CDMA technology is very high compared to GSM

technology infrastructure. “Reliance already has GSM infrastructure six to

seven circles in Eastern India and North- Eastern parts. It makes sense to

continue with GSM rather than investing in CDMA technology for the company,”

he said.

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