Reliance Communications to start GSM services

Anil Ambani's Reliance Communication has approached the Government seeking spectrum in 1800 MHz frequency to start GSM services in the country.

NEW DELHI: Close on the heels of defence authorities agreeing to vacate 45 Mhz quantity of spectrum, a crucial input for further growth of telecom services, Anil Ambani's Reliance Communication has approached the Government seeking spectrum in 1800 MHz frequency to start GSM services in the country.

If the application of Reliance is considered favourably, the company would immediately get a pair of 5 Mhz of spectrum in 1800 Mhz (a frequency for GSM operators), a move that could hurt many other aspirants of additional frequency.

The development is significant as the company has been offering CDMA-based mobile services in the country with nearly a subscriber base of 20 million. The company would have the flexibility of offering both technologies or migrating to GSM over a period of time.

Although the company declined to comment on future plans, sources said Reliance Communication, the license holder, may follow the Chinese model wherein the company would have an option to operate in both technologies simultaneously.

Department of Telecom (DoT) sources confirmed the move but said no decision has yet been taken on allocation of spectrum.

Reliance Telecom, a subsidiary of Reliance Communication, has been offering GSM-based services in six circles including Kolkata, West Bengal, Madhya Pradesh, Orissa, Bihar and North-East while the parent company operates CDMA services in these circles as well as rest of India.
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