The Hindu : Business : RCom to invest Rs. 6,000 cr.

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Wednesday, Jan 23, 2008
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RCom to invest Rs. 6,000 cr.

K. T. Jagannathan

Awards GSM roll-out contract to Huawei

CHENNAI: Anil Ambani-piloted Reliance Communications (RCom) has awarded Huawei, a leader in providing next generation telecommunications networks, a nation-wide GSM roll-out contract.

The deal is estimated to be worth over Rs. 2,000 crore.

The equipment contract to Huawei is the first nation-wide GSM roll-out contract for electronic equipment. Reliance Communications, sources said, would award more contracts in various other equipment categories over the next few weeks.

Under its GSM roll-out plan, the Anil Dhirubai Ambani company is planning to invest in excess of Rs. 6,000 crore in GSM electronics alone.

The award of contract to Huawei comes in the wake of RCom getting formal approval for additional radio waves, which will enable it to roll out pan-India mobile phone services using the GSM technology.

Recently, the company got start-up spectrum to launch nation-wide GSM services under its existing Unified Access Service Licence (UASL).

The nation-wide roll-out of GSM technology, company sources said, would commence a few months hence. “We will deploy next generation IP (Internet Protocol) enabled GSM network,” a top company official said.

Reliance Communication claims that it enjoys a market share of 60 per cent in the CDMA space.

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