Telecom Commision’s New Move Allows Reliance Industries To Offer Voice Services

The Telecom Commision (TC) announced its move that allows companies with wireless broadband services to offer voice services for a payment of an extra Rs. 1658 crore. This announcement can quite create a stir for ISP companies that possess 4G rights including RIL (Reliance Industries Limited) by enabling it to boost its stance in the telecom domain.

R.Chandrashekhar, Chairman of Telecom Commission and the Telecom Secretary, declared that the commission is supporting the recommendation of DOT committee in correspondence with Unified Licensing Regime. He stated that the ISP license holder with BWA spectrum keen on using the spectrum for an additional fee of Rs.1658 crore for the switch to unified licenses. The Telecom Commission is the highest decision making authority in the ministry. However, it has not been signed off by the ministry and is yet to be declared officially.

Reliance Industries Limited (RIL) led by Mukesh Ambani is the only country that holds fourth generation 4-G broadband airwaves. After winning the auctions in 2010, the company has been making an effort to set the ground for a successful launch and has infused $ 3.5 billion. Considering the Indian scenario at present where  voice caters to 85% of the telecom revenues, voice services act as a crucial parameter for telecom companies. While high anticipation have been riding on data services, they still contribute to a trivial 5%- 6% of the total revenues ,and is yet to reach out to the masses.

The DoT committee has also proclaimed their decision to bring the IP-1 companies to bring them under the license regime. When put into execution, the companies under the regime will have  topay8% of their annual revenue as annual license and will limit their foreign shareholding to 74%.

With this announcement coming as a boost to Reliance JoiInfocomm, earlier known as Reliance Infotel, ,  it can act as a game changer in the telecom industry by intensifying the competition and making it difficult for players like BhartiAirtel and others. Apart from that, it will enable the conglomerate to offer voice, video and data services on a single platter. TD- LTE is the fourth generation technology that provides high speed internet access to streaming video, live TV and heavy data. Telecom analysts have been in praise of RIL’s strategy claiming that it is making the right moves and has been been drawing a unique strategy as opposed to the other players.