Indian operators double up on mobile networks (India)Reliance to spend 50 billion rupees ($1.27 billion) on expanding its GSM network; BSNL to build out CDMA.
With demand for mobile services higher than ever, India’s telecoms operators are ploughing significant levels of investment into their networks.
State-owned telco Bharat Sanchar Nigam Ltd. (BSNL) has revealed that it is planning to offer CDMA-based mobile services, according to a report in India’s Economic Times on Friday.
“We are in the process of discussions for offering CDMA mobile services across the country,” Kuldeep Goyal, chairman and managing director of BSNL told local reporters.
Goyal was tight-lipped on how much BSNL plans to invest in a CDMA network, but he said that if the plan goes ahead, the company will initially set up 10,000 CDMA base stations within a year. A report by Reuters said a decision will be made on whether to offer a nationwide service by December.
BSNL already offers CDMA mobile services under the ‘Tarang’ brand name, but it is predominantly a GSM operator, providing mobile coverage to its 30 million subscribers all over India barring Delhi and Mumbai.
Indeed, its plans to extend its GSM coverage are well documented.
Over the summer BSNL inked over $2 billion-worth of network expansion deals including awarding a $1.3 billion contract to Ericsson for the laying of over 13 million GSM lines, and $810 million to Nokia Siemens Networks for a further 9 million lines.
Separately, BSNL has also announced plans to boost broadband coverage, inviting bids for the laying of 2 million WiMAX lines.
The news follows reports on Thursday that a BSNL competitor and CDMA operator Reliance Communications is planning to spend 50 billion rupees ($1.27 billion) on rolling out its own GSM-based service across India.
The investment is on top of the INR16.5 billion the operator already paid for its pan-Indian GSM licence, and the company plans to launch its GSM service within a year of being awarded the spectrum.
“Dual network operations lead to capex rationalisation and even stronger margins,” said Anil Ambani, chairman of Reliance, according to the Hindu Business Line.
He commented that Reliance hopes to extend its network reach to 300 million more people by the end of the year.
“India is the fastest growing telecom market with annual run rate of 100 million net additions. RCom is well positioned to participate in growth opportunity,” said Ambani.
Reliance is still riding high as the Indian mobile sector continues its strong growth.
On Wednesday the operator reported an 86% surge in year-on-year profit, yet this was tempered by a 15.7% fall in ARPU, which dragged the company’s revenue growth below analysts’ expectations.
This week’s moves by BSNL and Reliance to expand into CDMA and GSM services respectively follows amendments in October by India’s government that now permit operators to hold licences for each mobile technology.
