Reliance starts GSM network expansion (India)Indias’ Reliance Communications is embarking on USD 740 million plan to add 17 million new lines to its existing GSM networks in eight telecom circles. Over the next nine months, RCOM proposes to beef up the total capacity of its eight GSM networks in Kolkata, West Bengal, Orissa, Bihar, North-East, Assam, Madhya Pradesh and Himachal Pradesh to 20 million lines from a little over 3 million now. The company’s cost per line for adding 17 million GSM lines at a capex of USD 740 million works out roughly at USD 43. If this GSM expansion project goes per plan, by March 2008, RCOM’s GSM coverage is slated to extend across 9,000 towns and 30,000 villages. For its USD 740 million plan, RCOM is in talks to source GSM equipment from three vendors: Alcatel-Lucent, Huawei and ZTE. A large-scale network expansion is underway in the eight existing GSM circles, which on completion would multiply the existing network capacity, a spokesperson from RCOM said. A spokesperson also said that the company will not share specifics on the precise outlay or the vendors. RCOM had initially planned to launch GSM services on a pan-India level during the current fiscal year. The company had applied for GSM spectrum in fifteen circles over a year ago but has so far not been allocated spectrum. RCOM’s existing GSM networks will be EDGE-enabled and 3G-ready, said company sources.
