Tuesday, December 05, 2006

Reliance Comm invites world`s biggest telecom tender

Reliance Communications (RCL), an Anil Dhirubhai Ambani Group (ADAG) company is said to have invited bids for what is said to be the world`s biggest telecom tender to date, reports Economic Times.

The tender is valued valued at nearly USD 7-8 billion.At USD 100-110 per line, it will be the biggest ever tender for equipment floated by any telecom operator in the world.

It will demonstrate once again that the Indian market is the hottest and the most lucrative not just for service providers but also for equipment makers. The development also shows that RCL is serious about its GSM plans.

The company had, earlier in the year, created a euphoria by applying for GSM licences in 21 circles covering almost the entire country. Major GSM equipment providers like Ericsson, Nokia and Motorola are believed to be interested in the tender.

Globally, Swedish gear maker Ericsson and Finnish giant Nokia are the top two CDMA equipment vendors.

The move is part of RCL`s increased focus on GSM, which is used by over 70% of telecom subscribers and is more cost effective than CDMA.

The contract is likely to be split between at least 3-4 vendors as it is believed that no player can cater alone to the huge requirements.The winners will be announced 4-5 months later, after which it`ll take around 5-6 months for vendors to supply the first batch of equipment.

RCL has CDMA capacity for 30 million subscribers and has already roped in about 24 million subscribers. It is now adding nearly a million users per month and at this rate, it will require more lines by the middle of next year.

In 2001, BSNL`s GSM tender was awarded at around USD 150 per line, USD 43 more than the bid made by Ericsson this time.

RCL is the only private operator in India having a presence in GSM as well as CDMA. It has eight circles in India with 3.2 million GSM subscribers (services being offered by Reliance Telecom) and has 24 million CDMA subscribers in 21 circles.

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