CDMA player Tata Teleservices Ltd on Saturday announced its GSM foray and an investment of $2 billion (over Rs 8,000 crore). Of this $1.5 billion would be invested in a nation-wide roll out of GSM service in the next two years.
The remaining half a billion would be spent on its CDMA service. This clearly shows that the company will be focusing more on GSM in days to come. However, managing director Anil Sardana said this was simply because they had to establish the GSM network form the scratch, unlike their CDMA venture.
?We expect to rollout our GSM network in the 6 circles we have been allotted the spectrum by the end of this fiscal and our order is in place,? he said adding that the company would launch the services in the remaining circles as and when the spectrum is allotted.
The company?s move to enter the GSM arena follows the government?s decision a year ago of allowing the UASL holders to operate dual technology. Reliance Communication was the first CDMA player to opt for the GSM route after the government decision.
Sardana said the move was a result of the government?s policy, which encouraged GSM compared to the CDMA. He said the order for equipment for the GSM service was already in place.
With Trai?s recommendations on allowing MVNO, Sardana said, ?Currently the company has no plans of teaming?up with the MVNOs and this arrangement works best for niche segments?. On whether the company was planning to change the franchise agreement with UK-based Virgin Mobile to an MVNO, he said there were no such plans, however officials say the agreement with Virgin has a clause that allows the two companies to change the terms of pact.