RComm, Vodafone, BSNL in race for No 2 slot

Written By Nivedita Mookerji | Updated:

It’s indeed a very close race between Reliance Communications (RComm), Vodafone Essar and Bharat Sanchar Nigam Ltd (BSNL) for the No 2 slot, in terms of wireless subscriber base.

Battle hots up in the wireless telephony segment

NEW DELHI: It’s indeed a very close race between Reliance Communications (RComm), Vodafone Essar and Bharat Sanchar Nigam Ltd (BSNL) for the No 2 slot, in terms of wireless subscriber base.

While the current No. 2, RComm, had 41 million wireless or mobile phone users as of December 31, 2007, Vodafone Essar had 39.9 million and BSNL 36.8 million.

These numbers are from the draft offer document filed by RComm’s tower company Reliance Infratel. The company has sourced the data from the Telecom Regulatory Authority of India (Trai), according to the document.

Of the three telcos, RComm and BSNL offer mobile telephony on both the technology platforms — global systems for mobile communications (GSM) and code division multiple access (CDMA). Vodafone Essar offers GSM service only.

Among the other mobile players, CDMA service provider Tata Teleservices and GSM telco Idea Cellular are also apart from each other by a very narrow margin.
While Tata Tele is in the No. 5 position with 21.7 million mobile users, Idea is at sixth with 21.1 million.

CDMA major RComm, which offers GSM service in eight circles, has now been permitted to go all across the country with GSM too, but only after it gets spectrum for the same.

While BSNL is present in all circles, barring Delhi and Mumbai, Vodafone Essar is in 16 circles.

Vodafone has been allowed to offer pan-India GSM services now, again depending on when it gets the requisite spectrum.

A few months ago, Vodafone had made news by crossing the GSM subscriber base of BSNL.

In May 2007, Vodafone moved up to the No. 2 rank in the GSM category, in terms of subscriber numbers from being the third.

After acquiring a controlling stake in Hutch Essar early last year for $10.8 billion, Vodafone chief executive Arun Sarin had said that Vodafone Essar was aiming for the top slot in India.

While Vodafone Essar is targeting a 25% market share by 2010, the current number one mobile player Bharti Airtel and RComm are also aiming for similar numbers.
Meanwhile, CMD of state-owned BSNL, Kuldeep Goyal, recently said that his organisation is focused on getting 100 million plus wireless subscribers by 2010.

m_nivedita@dnaindia.net