The Hindu Business Line : Telecom dept seeks clarity on Reliance's GSM foray

The Department of Telecom (DoT) has indicated that Reliance Communication may be asked to vacate part of its CDMA spectrum if it wants to foray into GSM cellular services. DoT has asked the company for more details on its proposal to launch GSM cellular services.

Reliance Communications has applied for radio frequency in the 1,800 Mhz band used for GSM cellular services. While the application is for Delhi and Mumbai, the company, which is the largest CDMA player in the country, is looking to roll out a nationwide GSM network.

"They have sought spectrum wherever it is available in the country. We have written to them to indicate their plans so that we can take a decision. Our understanding is that they might completely switch over to GSM-based mobile services and exit CDMA," DoT sources said.

Market watchers said that the Reliance's move to switch to GSM comes after discussions with Qualcomm to reduce its royalty failed. While Qualcomm said that the royalty was not adding to the cost of operations, CDMA industry sources said that the company was charging a higher royalty in India compared to other countries like China. The Ministry of Communications is also understood to have informally requested the US based Qualcomm, the promoter of CDMA technology, to consider revising its royalty charges.

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