RCom to upgrade all users to 4G network

08 Apr 2016

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Telecom operator Reliance Communications will upgrade all its CDMA customers to 4G network in a phased manner, starting 4 May.

''RCoM has informed DoT that it will be upgrading its network from CDMA to LTE (4G) technology using the liberalised 800 Mhz spectrum. It will roll out LTE  services progressively in these service areas from May 4,'' PTI reported.

Anil Ambani-led RCom is said to be leveraging its spectrum sharing pact with Mukesh Ambani-led Reliance Jio Infocomm for 4G services.  The company will deploy its own 4G network over Reliance Jio infrastructure to deliver 4G services.

In February, DoT had approved sharing of active infrastructure like antenna used for transmitting mobile signals (See: DoT allows sharing of active telecom infrastructure).

RCom will trade CDMA spectrum in 800 MHz band across nine service areas where Jio does not have spectrum. The two companies had signed spectrum sharing agreement in 17 circles.

RCom had already paid Rs5,383.84 crore to liberalise its spectrum in 16 circles including Delhi, Mumbai, Punjab, Himachal Pradesh, UP East and West, Gujarat, Madhya Pradesh, Kolkata and Bihar. With a liberalised spectrum telecom operators can use any technology to deliver mobile services mobile services like like 3G and 4G.

The plan was revealed on the day ratings company Moody's Investors Service downgraded RCom's outlook to negative from stable, over delays in the sale of its non-core assets, which sent shares of the telco lower.

RCom had been looking to reduce the amount of debt by Rs 40,000 crore through the sales of its tower and optic fibre network and merging its wireless assets with Aircel, both of which had been delayed beyond their initial timelines.

However, according to Moody's RCom's spectrum sharing and trading pacts with Reliance Jio Infocomm and the imminent completion of a merger with Sistema Shyam Teleservices were positive developments in the past three months.

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