Sunday, January 25, 2015

Will Reliance Close Down CDMA Business?

For more than 1 year, RIMWEB guys (r-cdma & cdma fanboys) started a topic on its forum that Rcom's cdma network is crumbling. Many reported that issues of poor network signals on R-cdma (including voice over 1x & data over EvDO). Many expressed the view that Rcom is winding up their cdma operations. At the same time Rcom is also shutting down many of their stores.

So all it lead me to think about merger of Rcom & Rjio. As Rjio has almost 0% market share, their merger is always legal, though merged entity has to return some of spectrum on 1800 Mhz band. And in the upcoming spectrum auction Rjio will pay to retain 800Mhz band.

The merger sounds good, as ADAG, the parent company of Rcom is in huge debt. Recently ADAG sold its multiplex chain to Carnival Cinemas (more consolidation at Multiplex business). Not only that Reliance Capital will sell out some shares to another partner Nippon Capital.

But actually its not happening, I mean the merger.

Reliance is pushing its CDMA business in more logical ways. EvDO BTS are being stepped out from less customer base zones to high density population areas. And not only that they launched Rev B phase II at max speed of 14.7Mbps (brand name Pro 3) in circles where they don't have GSM 3G aka HSPA+.

Secondly I saw that in my place (Barrackpore) Rcom has closed their bigger sq. area-ed store at prime location and opened a smaller store, not in a prime location. In circles Reliance is cutting costs of running a Reliance World stores. That's why they are closing down several R-World stores where revenue is poor. 

Thirdly there is no stopping of launching good CDMA handsets by Rcom. All HTC CDMA smartphones are launched with R-CDMA offers. R-cdma is continuing to offer data focused plans.

So in a brief R-CDMA is not closing down. ADAG is just re-constructing the RCom. Wait and Watch !!

UPDATE 2016: RCOM to launch its own 4G as LTE800. Read the RCom 4G Coverage
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