With the Birla Group joining the race with the Idea buyout, the task looks even more daunting. Besides, Reliance will have to undo some of the good work that it did in CDMA. It will have to vacate some of its existing CDMA spectrum in lieu of GSM spectrum in Delhi & Mumbai circles. Moreover, it is reportedly planning to ask for phones with Re-Usable Identification Module (RUIM) chips and GSM roaming capability. That would make its old handsets redundant. Kobita Desai, an analyst with Gartner India, states with respect to switching platforms, “There are always huge costs associated, which include the incentives you need to give existing users and also subsidizing the switchover to a different handset.” If we assume each handset costs Rs.2000, Reliance would be looking at an immediate cash outflow of Rs.7.32 billion in its Delhi and Mumbai circles for replacements alone.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006
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