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Smooth run likely for Reliance's GSM plan

Department of Telecom says Reliance Communications', with its Unified Access licenses, is eligible to offer different services in the same circle.

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NEW DELHI: Reliance Communications' expanded GSM cellular telephony aspirations are likely to steer clear of any regulatory roadblock as Department of Telecom says the company, with its Unified Access licenses, is eligible to offer different services in the same circle.

 

The caveat is that it will have to part with the CDMA spectrum in case it decides to switch completely to GSM.

 

"They are an Unified Access Service License (UASL) licensee, which is technology neutral, and license conditions allow the company to operate different services (GSM and CDMA) in the same circle."

 

"In fact, they would not even have to apply for fresh license and therefore there is no question of any further payment," DoT sources said, adding the only condition they would have to meet is to surrender CDMA spectrum if they move away from it.

 

They said in its first application to the DoT a few days ago, the company has asked voluntarily if it would get spectrum in case it surrenders CDMA spectrum. Also, it has sought permission to offer GSM services in seven circles .

 

Earlier, Tatas were questioned on their stake in both services GSM and CDMA in the same circle on account of its stakes in Idea Cellular and Indicom in many circles, including Delhi, which eventually led to the Tatas exit from the venture.

 

In case of Tatas, the condition that prevailed was promoters in one company cannot be a promoter in another company with substantial interest which gives them an equity stake of more than 10 per cent in the same circle.

 

Before that, STT and Telekom Malaysia (TMI) consortium did not get nod for acquiring 47.7 per cent stake in Idea Cellular. Their proposal ran into rough weather with the DoT raising objections to the deal on the ground that the same company could not hold more than 10 per cent stake in two operating companies in the same telecom circles.

 

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