October 20, 2007

Reliance Communications Gets GSM Approval

Even as Reliance Communications (RCOM) received formal approval from the government to launch GSM technology of mobile phone services in India, existing GSM players are up in arms to oppose the move.

"Reliance Communications Limited has received requisite approvals from the Department of Telecommunications (DoT) to offer GSM services on a nationwide basis under its existing Unified Access Services Licences," the Anil Ambani-promoted company said in a statement to the National Stock Exchange (NSE).

Opposing the move, the Cellular Operators association of India (COAI), a leading GSM industry body in a letter to the DoT secretary D.S. Mathur said: "It may first be pointed out that crossover is not permissible under the present policy and license regime has been recognized by both DoT as well as TRAI (Telecom Regulatory Authority of India)".

"Without prejudice to our submissions that such crossover/dual allocation of spectrum cannot and should not be permitted, it is submitted that even if the same were to be allowed, it can only be done through change in both policy as well as license as also after following due process of law," COAI added.

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