A Big Twist To Begin In Indian Telecom Sector: Mukesh Ambani Owned RIL To Bid For Upcoming 2G Spectrum Auction


It well known that Mukesh Ambani is entering with full-fledged 4G launch into Indian telecom industry later this year. Mukesh entry has already threatened to incumbents of the telecom sectors. The competition is now going to be more intensified due to Mukesh Ambani owned Reliance Industries (RIL) has also planned to bid for 1800 MHz band in upcoming 2G spectrum auction.

RIL is planning to bid for all telecom circles around the country and undoubtedly, the move of the company will create more competition in the market. However, DoT has applied some conditions, new entrants, participating in 1800 MHz band 2G spectrum auction, will need to bid for at least 4 blocks of 1.25 MHz, beside they will also be allowed  to bid for additional blocks.

Mukesh and Anil worked together until 2005, later Mukesh had to give up the telecom business to his younger brother (Anil Ambani) and he had also signed a non-compete agreement with Anil, validated for 2010, but this time, it’s over. Apparently, RIL entry into the telecom sector, once again after  such a long period, will impact to existing operators in 2G segment including Airtel, Idea, Vodafone and more.

Mukash owned Reliance is only the player in the country having a pan-India BWA spectrum, means it will not need to make any agreements with some other operators to provide its services especially in roaming conditions. In June 2010, RIL acquired Infotel broadband services, by virtue of this acquisition, RIL could only offer high-speed data services to its customers, but not voice-based services. However, a liberalized spectrum policy is expected to be framed by telecom regulators later this year, according to which, the operators could offer voice services through 4G or broadband wireless access (BWA).

However, it was expected that Mukesh could tie-up with ADA group for voice spectrum in order to provide voice services around the country. But this time, as Mukesh has planned to bid for  2G spectrum auction, it will not need to make partnership with ADA group for voice spectrum.

You might have remembered, how Mukesh had shaken the country with “Reliance Monsoon Hungama” in 2003. Really, the campaign had revolutionized Indian telecom Industry, it was a paradigm. But this time, Mukesh comeback is not so easy, because in last 10 years, incumbents like Bharti Airtel has made a strong impression into folks mind. But, the pricing of the services will play vital role to entice folks across the country. At present, Airtel is offering its 4G services across Kolkata and Bangalore, which are considered as quite expensive. On the other hand, Mukesh is planning to offer cheapest 4G services in the country; users will have to pay just RS 10 for 1GB of data downloads.

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