Why Anil Ambani wants to revive the GSM arm, Reliance Telecom ?

PTI & Hindu have reported that Reliance Telecom, GSM arm of Reliance Communication’s has applied for additional spectrum. It is well known fact that Reliance Infocomm , the CDMA arm of Reliance Communication’s is the third largest mobile telecom service provider in India. While its GSM arm, Reliance Telecom has a mere market share of 2%. It is speculated that Reliance Telecom will start services in Delhi & Mumbai circles soon.

Internationally telecom has been a rapidly evolving technology. With the advent of VoIP, their are limitless possiblities on how communications can be established at fraction of the cost. However, for value added services and to maintain excellent Quality of Service, IP networks involve significant investments too. It is learnt that, their are companeis like SIPPhone,Tropos, and others who want to provide mobility on IP networks. However, advanced telcos like NTT DoCoMo have invested heavily to make the transition from 3G towards super 3G and 4G with a ton of value added services. I am unaware of the developments in CDMA.

Now why is Anil interested in reviving the GSM arm ? Reliance has to pay 7% royalty on every CDMA compliant equipment and mobile handset it uses or sells. While CDMA operators in China pay 2% and telcos in the US pay 0% royalty. Additionally, Anil Ambani had always favored going the GSM way but it was Mukesh who went the CDMA way. One another main reason is, India has 80% GSM subscribers and continue to grow at a faster rate than that of CDMA operators.(Reliance & Tata Indicom). Indians are carzy about fancy handsets. Investments in CDMA handsets locks you to that operator. Also CDMA users have limited handset choices.

Call it Anil’s ego to KILL Mukesh’s baby(Reliance Infocom) or embrace the superior GSM technology, Reliance Telecom has got a Thumbs Up from the Ambani. Sky is the limit for Reliance Telecom now.

18 Comments

  1. To
    The CMD
    Reliance Infocom Limited

    Sub : Non Availability of all R-World services on my Nokia 6255 handset

    Sir

    I would like to draw your attention that I bought a Nokia 6255 hand set from M/s Shashank Communication Kanpur, a franchise of reliance infocom on 17th August 2005. I was informed that the said set was one of the advance set and all the services of R-World are available on this set.
    But alas I am not getting all the R-World services (In particular R-Surf) on my set. When I raised the issue with the dealer he directed me to contact local Nokia Service Centre. When i approached them they informed that as such there is not problem in the handset.
    Since then I am raising this issue ((non availability of R-Surf) with your customer care department but without any success. Last time I contacted them on 12.10.2007 but sorry to say nothing happened till date.
    I want to thanks your organization for one very good quality they developed that is they harass the customers to such an extent either he/she stops complaining after being suffering up with this high quality of customer care experiences or he/she just change his/her attitude and consider it another sarkari service inform at private level.
    I don’t expect much from your side (As I have seen your great service quality in last two years). But even then I expect response from your side (Also I want to gift my set to you so that you may check yourself whether my complain is true.

    Sanjay Kumar Awasthi
    C-601, Shyam Nagar,
    Kanpur
    M.No. 9335750658

  2. Hi,

    In this world very…. poor network is Reliance coverage.because the Reliance coverage is very very poor in major city places in Chennai and all over tamilnadu.so i inform to customar care regarding coverage problem but the customer care staff not response for my coverage problem.past one year i escalating in this issue but performance is very poor so i change and choose good GSM network of VODAFONE.so please dont choose Reliance network.if you want good network coverage please choose VODAFONE or Airtel .This is my kindly information advise

  3. hi,
    This is kuldeep from delhi.I would like to draw ur kind attention to your broad band service. This service is not full fill its ability.As I have a broadband connection of reliance which is always not in working condition > I register my complaints so many times But I never got a full commitment from our side.

    Kuldeep (Delhi)
    09811581252

  4. my name is abhishek gaur
    i am using smart gsm servicein madhaya pradesh my no is 9907076050 last 1 month i am facing the problem of balance deduction without any reason I have done complaint 4 times . but my problem is not sort out i am very disturb with activity of smart(Reliance) GSM in madhyapradesh
    now i am thinking to take any legal action if my complaint is not sort out

  5. Reliance GSM service: (PATNA)
    (1) Call Drop is Very common.
    (2) Very difficult to connect with any network even with within network
    (3) GPRS not working properly, Server down 5-9 days out of 30
    (4) 99 % customer care employee can’t talk in english.
    (5) & bla-bla-bla

    Day-by-Day their service is going down….down….down….down….down….down….& down…..just trust me management organiser of Reliance GSM service………plz improve the services….

  6. There are no probs with CDMA till now .. except 1 that NO GOOD handsets are available.

    I had been using CDMA since its inception DAPO. but due to lack of handsets I will be switching to GSM but NOT reliance. it would be iDea or Airtel.

  7. hi i am kailash prasad sahu from karbianglong assam serving as a retailer of RTL since last three years,
    1- most of the time the servises are not available.
    2- if the tower is available the line is busy so it Very difficult to connect with any network even with within network
    3- the business is gresually down down down every day.
    4- the daily collectin of our area is decreasing day by day even some people are planning to consumar coart for the above mentioned problem.
    5- a mesority of the consumer have jump to other network
    6- the company have many tower in ready condion thoue the servicess could not start, till the date and company have to lose lot of mony day by day.
    7- the moast of the runnining tower were serve only 3to4 days in a week.

    kailash

  8. Hi Sir its me madhav why i have to said to you.
    coz.
    You have provided me cetificate of highest selling postpaid connection for the year 2004-05 of best sales executive for north east.the time i join u at that time u have 2 towers in tezpur even day or night rain or thundershowers i provide ur connections, even most of the subscribers get their connections activated they alwys feel good about u its not u but we people make u feel great. but did u people make something for us or did u remembers those guys who put their efforts that time. The persons who are putting efforts are no longer with ur company u even never try to adopt those people in ur company jisne aapna saara effort laagya.
    Sir, why u give prizes every year. Stop this and dont make fool 2 every guy. every sales a sales guy try to catch or open it. only ………….
    Right know i am working in a different company and again i have to start frm zero to make myself. but why don’t company give them oppurunity to grow them if some one put so much effort.even u pay something less people will work for u. But sir do something good for those guy who puts so much effort for u, i have to say these lines bcoz u never see the people who are giving 110% for u.Just try and recognize them. DonT tell my name but ask ur north-east region superiors who are looking after these region, they will definitely know about me.
    Regards
    Madhav Chetri
    Tezpur

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