ADA Group company Reliance Communications (RCom) is planning to set up WiMax networks across 50 countries in the next three years to move into the global telecommunication market. To get a headstart, the telecom major is planning to acquire a European WiMax operator in a $300-400 million (Rs 1,200-1,600 crore) deal. The worldwide interoperability for microwave access (WiMax) is a telecommunications technology that provides wireless data over long distances in a variety of ways. RCom has set up WiMax networks in 18 cities in the country, where Tata Communications and state-owned Bharat Sanchar Nigam Ltd (BSNL) are the other major players.
According to sources close to the development, the Anil Ambani group company is close to acquiring a company in Europe that has WiMax licences for over 20 countries across Eastern Europe, Africa and Latin America. The name of the company could not be ascertained. But merchant banking sources said that the acquisition would be in the range of $300-400 million.
The acquisition of the European company will enable RCom set up fresh WiMax network in these countries and scale up the existing network. The Indian company will have to make additional investments in these countries. This would be company’s second acquisition in the WiMax space. In February, the company had acquired a significant stake in a French WiMax chip manufacturer Sequans Communications. The financial details of the acquisition were not disclosed. Further, RCom will expand its reach across countries in the Saarc region, Mediterranean and other South African nations.
However, sources added that the move was part of RCom’s `Vision 2012’. The company intends to use undersea cables and WiMax-enabled last mile access in a similar number of geographies. RCom intends to provide high-speed broadband services, voice, video and data suite and 4G services, after making inroads into the global market. The company intends to connect over 2.5 billion individuals over WiMax networks.
Tags: 4G, BSNL, Reliance, WiMax
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GSM majors seek six 3G slots
Monday, March 31st, 2008
Mobile operators are likely to fiercely oppose the government’s move to allow only two private operators apart from BSNL/MTNL in the 3G space. On March 29, ToI reported the Telecom Commission’ (TC) intent to allow through an auction, only three operators in 3G, with an initial allocation of 10 MHz spectrum each rather than six operators with 5 MHz spectrum each. It further proposes that one of these three operators should be state-owned BSNL/MTNL, which will be required to match the highest bid placed by private operators when the auction occurs.
This development leaves at least four of the existing six operators and nearly all of the new operators without 3G spectrum, a fearful thought for companies whose valuation and growth is acutely linked to the availability of spectrum in 2G and migration to 3G.
Some of the largest operators spoke to ToI on conditions of anonymity. “The government’s 3G proposal is both flawed and totally inconsistent with its policy of open competition in the 2G arena. How can the country have upto 12 operators per circle in 2G and merely 3 operators in 3G?” they say. 5 MHz of 3G spectrum for six operators is the way to go. Even in Europe, most 3G operators did not use even 5 MHz for the longest period of time,says another players. Experts feel that a combination of 7 MHz-10 MHz in 2G with 5 MHz in 3G would be an ideal and in fact, potent combination for many operators.
Ironically, the 3G proposals in their present form carries the potential of bringing together warring parties like Vodafone, Idea and Bharti, who could join hands with Reliance, Tatas and some of the new entrants to lobby for more slots (5 MHz) than fewer (10 MHz) as is currently proposed. This is critical for them as the uncertainty over 3G spectrum forces a serious and potentially crippling review of company valuations, at least till the final winners are declared. Interestingly, the GSM association is yet to take a public stance on the TC’s latest proposal.
Tags: 2G, 3G, BSNL, GSM operators, MTNL, six 3G slots, spectrum, TOI
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Nortel bags BSNL order
Thursday, March 27th, 2008
India’s BSNL (Bharat Sanchar Nigam Ltd.) awarded a GSM expansion contract valued at over US$100 million to Canada-based telecommunications solution provider Nortel Networks on 25th March,2008. BSNL, which currently serves 20 million cellular subscribers, is actively growing its network reach and capacity to meet increased demand for mobile telephony services across the country. This project focuses on southern areas of the country. Deployment is underway and completion is expected in 2008.
BSNL has selected Nortel to support its southern Global System for Mobile Communications (GSM) network expansion with a very aggressive roll-out schedule, Nortel said in a statement. With this selection, BSNL can build on and maximise its existing network investment and rapidly extend mobile services to new subscribers, it added. BSNL, with over 20 million cellular subscribers, is actively growing its network reach and capacity to meet increased demand for mobile telephony services across the country. From 2004,Nortel has worked closely with BSNL in rolling out mobile services to some seven million customers in the southern and eastern parts of India.
