DNA: Everybody is second guessing Reliance Communications‘ next move. There is a theory doing the rounds that Reliance may completely shift from CDMA technology to GSM. It was recently reported that Reliance had sought the government’s approval for providing GSM services. Reliance Communications is primarily a CDMA player and has more than 20 million subcribers.
But why GSM now? One reason cited is that they need additional spectrum so applied for GSM permit. The other reason is that CDMA is charging royalty of $13 to $15 per- chip from Indian customers, while it’s much less at around $3 in countries such as China and Korea. Reliance is not giving a definite answer. A company spokesperson said, “We are committed to pursue the world’s leading mobile technologies, whether CDMA or GSM, to provide the best and most competitive services to our many million customers.” We have to wait and watch.
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