Light Reading
Indian CDMA carrier issues the Godzilla of wireless RFPs – for a $7B GSM network

Reliance Plans $7B GSM Build-Out

Light Reading
News Analysis
Light Reading
12/6/2006
50%
50%

India's Reliance Communications Ltd. (RCom) is inviting bids for GSM equipment contracts in a massive $7 billion-plus network expansion that will see the CDMA-based operator running two mobile networks.

The country’s largest CDMA (code-division multiple access) carrier, Reliance has made the strategic decision to switch to GSM (global system for mobile) for the purpose of expanding its network coverage and capacity. Its CDMA network will remain in operation, for the time being at least -- a decision the operator says will allow it to roll out the new network more quickly and cheaply by using its existing passive infrastructure to add capacity. (See Reliance Dabbling With Dual Networks.)

Reliance's CDMA network has capacity for 30 million subscribers, and if its customer base continues to expand by more than one million users every month, it will run out of capacity by mid-2007.

According to local press reports, Reliance is looking at awarding three or four contracts for around 70 million to 75 million GSM lines and 20 million to 25 million wideband CDMA (3G) lines.

By leveraging the CDMA network, it will be able to cut the cost of 30 million lines, and assuming it pays the going rate of around $100 per line for the rest, the carrier could spend around $7 billion or $8 billion on the network. The evaluation process could take up to five months.

The project dwarfs Bharat Sanchar Nigam Ltd. (BSNL) 's 60 million line tender as the largest ever wireless request for proposals. (BSNL's RFP is often called a monster; this must be Godzilla.) It's sure to attract the likes of Ericsson AB (Nasdaq: ERIC), Nokia Corp. (NYSE: NOK), and Alcatel-Lucent (NYSE: ALU) -- which are set to gain from the state-run carrier’s expansion. BSNL’s contracts are being delayed in court over a dispute with Motorola Inc. (NYSE: MOT). (See Ericsson, Nokia Bid Low for BSNL and Moto Stalls BSNL's Wireless Tender.)

In addition to its nationwide CDMA network, which operates in 21 of India’s 23 telecom “circles,” or regions with 24 million customers, Reliance already runs a small GSM network in eight regions with around 3 million customers through its Reliance Telecom subsidiary.

But while Reliance moves ahead with its plans to build out the GSM network, it remains to be seen whether the government will actually allocate any more GSM spectrum to the carrier. (See Reliance Squeezed by Spectrum Crunch.)

India’s mobile operators are all in need of spectrum to accommodate rapid subscriber growth. In October alone, they added a combined 6.7 million new subscribers -- bringing the total to 136.22 million. The Indian Department of Telecom is still working to release additional spectrum it promised by the end of the year, and says it will finalize a comprehensive spectrum allocation policy by the end of 2007.

Reliance has applied for GSM spectrum in 21 of the 23 circles under a unified service access license, but it’s at the back of the queue. And in the most sought-after circles, which incorporate cities like Mumbai and New Delhi, there won’t be enough spectrum to go around. Priority will go to the national GSM operators such as BSNL and Bharti and regional carriers like Hutchison Essar and Idea Cellular Ltd. , which have recently been awarded new licenses to expand. (See Indian Mobile Set to Spread.)

Since it first revealed its dual-network strategy, Reliance has been butting heads with the Indian government, which has said it will need to give up some of its CDMA spectrum in exchange for GSM spectrum. Reliance argues that it needs both to accommodate subscriber growth.

So why would Reliance go to the trouble of inserting itself into the GSM market? Part of the answer is, in fact, spectrum. In the less sought-after regions, there is spectrum still available, and while CDMA operators are allocated spectrum in blocks of 2.5 MHz, GSM carriers are allocated 5 MHz.

The shift in focus is also part of the larger move away from CDMA in the mobile industry. GSM now caters to 70 percent of global mobile subscribers, making handsets and equipment cheaper to source. It also provides a migration path to wideband CDMA for 3G, which is expected to reach India early next year. (See India Prepares for 3G Rollout.)

— Nicole Willing, Reporter, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
materialgirl
50%
50%
materialgirl,
User Rank: Light Beer
12/5/2012 | 3:33:01 AM
re: Reliance Plans $7B GSM Build-Out
With this slow-moving government and growing demand for low-end services, India seems a perfect spot to introduce WiFi services. Is WiFi an unsung hero here already?
standardsarefun
50%
50%
standardsarefun,
User Rank: Light Beer
12/5/2012 | 3:32:57 AM
re: Reliance Plans $7B GSM Build-Out
Get serious! WiFi can barely go a few 100m and mesh would never scale to cover this sort of traffic load and nor would you be sure of the powering for the boxes.

India has a massive telecom capacity expansion in front of it and the only real choices are 2G/3G or WiMAX. WiFi is a fun idea for some urban cases but not for something as serious as the future of Indian telecom infrastructure!
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
LRTV Custom TV
Exploring the Future of Cable Access

10|15|14   |   6:23   |   (0) comments


Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
LRTV Custom TV
Optimizing & Monetizing WiFi

10|15|14   |   5:53   |   (0) comments


Cisco's Vince Pandolfi outlines the reasons for cable WiFi's rapid growth, lays out the issues with the technology and explains the new Cisco tools that can help operators monitor and improve their WiFi delivery.
LRTV Huawei Video Resource Center
Emulex & Huawei Collaboration Mutually Beneficial

10|14|14   |   4:17   |   (0) comments


US company Emulex collaborates with Huawei in areas such as blade servers and workload documentation. Mike Heumann of Emulex believes that Huawei has done incredibly well moving from a telecom company into servers and networks, working closely with customers to realize their needs.
LRTV Huawei Video Resource Center
Chile's VZION Looks Forward to Seeing More of Huawei

10|14|14   |   4:43   |   (0) comments


VZION is a systems integrator company in Chile with a focus on virtulization technology. In this video, Cesar Alcacibar talks about the challenges in virtualization and how Huawei helps his company to achieve the best results possible. Alcacibar is expecting more adoption and integration of Huawei technologies in Chile.
LRTV Huawei Video Resource Center
Pro-Datech & Huawei for a High-Tech Singapore

10|14|14   |   2:59   |   (0) comments


Pro-Datech Systems is a specialty IT solution provider based in Singapore. For an added value to its customers, the company uses Huawei's hardware and trusted performance and features for a total solution. It's looking forward to the creation of a lab, to be based in Singapore, for the two companies' coorporation on total storage solution.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Forget the Internet, Brace for Skynet
Stephen Saunders, 10/15/2014
HBO Will Go OTT in 2015
Mari Silbey, Independent Technology Editor, 10/15/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
Like Us on Facebook
Twitter Feed