Reliance Industries 'eyes' Videocon 2G licences

Leading telcos are closing in on deals to acquire smaller companies in the post- auction scenario. According to sources, Mukesh Ambani-run Reliance Jio Infocomm (RJI) is inching closer to strike a deal with Videocon Telecommunications in 1,800 MHz for buying its 2G licences in eight circles while Sunil Bharti Mittal-led Airtel is eyeing Loop Telecom's Mumbai circle.

RJI has deep pockets and the Videocon deal would give it a much- needed opening to roll out a pan- India footprint for offering voice services over the 1,800 MHz band. The company has already acquired 1,800 MHz band spectrum in 14 circles through the 2G auction and the eight circles of Videocon would give it a nationwide reach. However, an RJI spokesman denied the move.

Videocon Telecom had scrapped its plan to participate in the February auction at the last minute. Top government sources told M AIL T ODAY that this is a strategic decision.

Videocon secured 1,800 MHz band airwaves in the November 2012 auction for eight circles of Jharkhand, Bihar, West U. P, East U. P, Gujarat, Haryana, Chhattisgarh and Madhya Pradesh.

RJI has emerged as the biggest holder of liberalised spectrum after acquiring radio waves in 14 out of 22 service areas for around Rs 11,054 crore in the last round of auction. A liberalised spectrum regime allows companies the flexibility to provide services of their choice- voice, data, and video- in the allotted bands.

RJI plans to offer voice and 4G data services on one technology standard to its retail and enterprises subscribers.

RJI has opted for 1,800 MHz as it can be interchangeably used between 2G voice services and 4G services on the long term revolution, or 4G platform. " RJI's mobile subscribers would not need a high- end 4G handset and can continue to get voice through 1,800 MHz and high- speed data through the same mobile.

However, for enterprise subscribers, RJI will use the existing 2,300 MHz airwaves it bought in the 2010 auction," an official said.

RJi has been building a robust network for data services but of late it has realised that it needs to enter voice services as well. RJI is also in talks with state- owned BSNL for subscribing to their tower infrastructure.

BSNL is the only company with the widest reach of network in the country.

Courtesy: Mail Today