The Hindu Business Line : Reliance seeks to offer GSM services in Mumbai, Delhi

The Anil Ambani-promoted Reliance Communication has applied to the Department of Telecom seeking radio frequency to start cellular services based on GSM technology in Delhi and Mumbai.

Confirming the move, senior Reliance officials said that the decision was based on a long-term strategy to offer services riding on a mix of both technologies replicating the model deployed by Chinese operator, China Unicom.

They added that the spectrum crunch for CDMA operators was also forcing them to look at deploying a GSM network.

"There are only 15 carriers for CDMA operators which will run out at some point. We are already facing severe spectrum crunch in some of our circles and the delay in the spectrum policy is not helping our business. Therefore, we are now looking to offer GSM services as well under the unified access licence," said a company source.

Market watchers said Reliance has taken the jump eyeing the 45 Mhz spectrum which the Defence forces are in the process of vacating for commercial mobile usage.

If Reliance's application is approved, the company would immediately get a pair of 5 Mhz of spectrum in 1800 Mhz, a frequency for GSM operators.

The move would, however, hurt the existing GSM operators who will have to share the available spectrum with one more operator. Already, there are four operators in a circle clamouring for radio frequency.

This is the first instance in India when an operator has chosen to switch to a competing technology.

Internationally, China Unicom and US-based AT&T have made similar switches.

Reliance, along with Tata Teleservices, has so far been leading the charge against GSM operators over the last six years on various policy issues, starting from WLL limited mobility to the debate over spectrum for third generation technology.

Reliance has close to 20 million mobile subscribers to its CDMA-based service.

Though it also offers GSM-based services in six circles - Kolkata, West Bengal, Madhya Pradesh, Orissa, Bihar, and North-East - it had been betting big on the CDMA business so far.

According to sources, while the new application is only for two circles of Delhi and Mumbai, the company could look at other circles once the Department gives the green signal.

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