RCom plans 3G intra-circle deals for 2G services
23 Oct 2015
Anil Ambani-controlled telecom service company Reliance Communications (RCom), which will lose its right to use 2G spectrum in December, plans to roll out a third-generation (3G) intra-circle roaming (ICR)-like agreement with other service providers in order to continue 2G service in Bihar, West Bengal and Assam.
"RCom already has existing and valid intra-circle roaming (ICR) agreements with other telecom operators, predominantly Tata Teleservices and Aircel, to offer 2G GSM services to its customers in these three circles," reports quoting sources close to the development said.
Under 3G ICR, telecom operators who don't have 3G spectrum in a circle can use their partner's network to sell and operate 3G services.
While the Telecom Disputes Settlement Authority of India (TDSAT) holds 3G intra-circle agreement to be valid, the Department of Telecom (DoT) has challenged it. RCom has also approached the state-owned BSNL, Vodafone and Idea Cellular for an agreement.
RCom has failed to win back 900 MHz spectrum it uses for providing 2G mobile services in West Bengal, Bihar, Assam, Odisha and the North-East service area.
The company bought spectrum in 1800 MHz band in Odisha and the North East, but it would require to almost double the network size to provide coverage to its existing 2G GSM customers.
A deal with telecom operators having 900 MHz spectrum can ease the burden a bit. BSNL holds 900 MHz spectrum throughout the country, which gives wide coverage for mobile service compared with other spectrum bands.
RCom is also looking at the option of buying airwaves under spectrum trading guidelines to support services in these three circles, but it would still need a two-year waiting period to operationalise a trading deal.
The company has over 19 million customers across these three service areas, including 2G GSM network users, according to sources. The company is trying to lure 2G network users to upgrade to 3G network by offering equal mobile call and internet rates.
Vodafone has also lost 900 MHz spectrum in Tamil Nadu and uncertainty prevails over continuity of 2G service to its customers.
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