Reliance Comm seeks 3G spectrum

NEW DELHI: India's top CDMA-based mobile services provider, Reliance Communications Ltd., said on Thursday it had sought 3G spectrum from the government to test services and equipment.

Reliance's move comes after India allowed four major carriers, including top-ranked Bharti Airtel Ltd., to conduct indoor trials of third-generation mobile services.

A Reliance official said the firm had sought 3G spectrum for 13 of the 23 circles or zones that make up India's mobile industry, the world's fastest-growing wireless services market.

Carriers can offer services such as faster Internet access, movies on demand and high-end online gaming on the 3G spectrum.

Reliance Communications also offers mobile facilities based on the GSM platform.

Soaring growth has led to a paucity of bandwidth in large cities. Carriers have requested the government to allot fresh frequencies in 3G and other bands to ease congestion. At present most of the spectrum is issued for 2G and 2.5G band as India remains a predominantly voice market.

But companies are ramping up high margin value added services as voice tariffs, already the lowest in the world, are commoditised.

Carriers that were issued 3G spectrum earlier for tests include state-run telecoms firms Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd., and private firms Bharti Airtel, 30.8 percent owned by Singapore Telecommunications Ltd., and Hutchison Essar Ltd.

India plans to allot spectrum for 3G band later this year, and has appointed a panel to look into pricing and allocation. The ministry has not set a dateline for the launch of 3G services.