IIPM-News:- RELIANCE COMMUNICATIONS : GSM FORAY

Coming full circle
Reliance must give clear signals on its telecom strategy

89.07% of the new 476 million mobile connections, globally, in 2005 are all GSM supported services. Does this alone justify Anil Ambani’s latest move (on June 13) of applying for GSM licences in the Delhi and Mumbai circles? Well, if you think it does, then you are a bit too optimistic! If you think otherwise, you probably have not much faith in the GSM technology – and perhaps feel even Anil should not! An initial analysis of this move gave an entirely different interpretation. Analysts attributed the decision to the royalty charges of 7% (which is too high compared to, say, China’s miniscule 2%) on CDMA phones that patent holder Qualcomm was charging Indian CDMA players. It was high time someone kicked off the debate on why such exorbitant fees should be paid?

For Complete IIPM - Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

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