Reliance Communications Gets Amended Wireless License

by Heather McLaughlin

There is going to be more growth at Reliance Communications, the second largest mobile phone carrier in India. The company was recently granted an amended license to expand their services to wireless subscribers.

The company is going to expand their GSM network throughout India. Reliance currently operates a national CDMA network. The addition of a second network will help them compete and gain market share in the region. Competitors include Bharti Airtel Ltd. and Vodafone Group Plc’s local unit.

“It is positive for Reliance Communications because the GSM market is much larger,” said Mahesh Patil, who helps manage $800 million in stocks at Birla Sun Life Asset Management Co. in Mumbai. “But the whole spectrum issue needs to be resolved before; any delay in allocation of spectrum to Reliance is positive for Bharti as it will continue to expand.”

Reliance reportedly paid 16.51 billion rupees ($419 million dollars) to offer GSM network services. They will extend to service l 22 of India’s designated telecommunications zones.

Bloomberg