Telecom Lead India: Reliance Communications and Aircel are taking lead in new telecom business models.
Reliance Communications says its Pay As You Use model will be extremely cost effective and enhance addressable market without upfront Opex and Capex.
As part of the new business model, Reliance Communications will sign Intra-Circle Roaming agreements with existing telecom operators in India.
Reliance Communications has already signed Aircel for 2G GSM intra-circle roaming.
The new business is vital for Aircel as it is pruning its presence in the Indian telecom market.
Once in place, Reliance Communications’ 2G GSM customers will be able to roam seamlessly on all partner networks, free of any additional cost.
These ICR agreements will increase Reliance Communications’ national 2G GSM network footprint by 10,000 base stations and bring in an addressable market of over 150 million customers, adding up to a market opportunity of over Rs 10,000 crore.
Reliance Communications is planning to finalize all agreements by the end of the second quarter of the ongoing financial year.
Recently, Reliance Jio Infocomm, the 4G venture of Reliance Industries, signed Airtel and Reliance Communications, for sharing their telecom infrastructure.
Reliance Communications’ association with Aircel indicates that top mobile operators are focusing more on cost cutting and less on competition. This is important to drive business in the current regulatory atmosphere.
“We are in advanced stages of talks with operators across the country to put these agreements in place. We just signed pan-India 2G GSM ICR agreement with Aircel,” said Gurdeep Singh, president and chief executive officer (Wireless), Reliance Communications.
Interestingly, Gurdeep was the COO of Aircel before shifting to Reliance Communications.
Increased capacities will significantly improve both outdoor and in-building coverage, providing RCOM customers with an enriched mobility and data experience.
The Indian telecom industry is at a stage where players are faced with high operational costs—be it energy, infrastructure, sales or distribution.
“Our strong infrastructure and network capabilities across the country have enabled us to provide a differentiated, redefined and affordable user experience to our customers. The signing of the MoU with RCOM is our first step in this direction, to make mobile services available to all,” said Kaizad Heerjee, chief operating officer, Aircel.
Congratulations for both Reliance Communications and Aircel for identifying new business models.