Saturday, May 17, 2008

Reliance to Offer GSM based Mobile Service

Reliance has already made a good presence in India through its CDMA based service. Today, Reliacne’s CDMA based mobile service is available in 15000 towns and 4 lakh villages across India and 40 million people are using their service. However, Reliance chief Anil Ambani is not satisfied with this growth and therefore, now he also wants to enter GSM based mobile phone market in India.

The major reason behind this shift of Reliance is to reduce their dependency on the CDMA based technology and also getting advantage of fast growing GSM technology. Worldwide GSM based mobile market is growing at faster speed as compared to CDMA based technology. Therefore, Reliance also wants to catch with the global trend. Second reason behind this shift is license fee associated with use of CDMA based technology because reliance is required to pay some revenue to the CDMA based technology innovator company every year.

By going for GSM technology, Reliance will have more options available in front of it. Already, Reliance has put orders worth 1 billion for acquiring appliances and machinery for setting up GSM based network. Therefore, soon we can hope for more stiff competition in the GSM based mobile telephony and this move can further heat up the already heated up mobile telephony market in India.

Already, people in India are enjoying number of good deals and schemes on their mobile phones which people have not even thought of few years back. Overall, this is good news for the mobile users in India that they can now enjoy more options. Reliance is expected to launch their GSM based mobile telephony by the end of this year in limited areas.

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