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Reliance Communications has made full repayment of two loans amounting to $1 billion (around Rs 6,000 crore), during the quarter ended June 30.The repayments have been from the company's rupee resources.

Business News

Mukesh Ambani-owned Infotel Broadband,plans to invest $ 10 bn on its 4G Network

Thursday - Dec 20, 2012, 10:14am (GMT+5.5)
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Mukesh Ambani-owned Infotel Broadband,plans to invest $ 10 bn on its 4G Network

Mumbai -  Mukesh Ambani-owned Infotel Broadband, which is gearing up to launch 4G mobile services, is partnering with Russia's Spirit DSP for software that will enable it to carry voice and video services on its Long Term Evolution (LTE) network.

"Reliance intends to invest $10 billion in its LTE network and has turned to Spirit's software products for voice and video calls over LTE instead of waiting for phone makers who are slow in offering handsets transmitting voice and video in 4G networks," the Russian firm said in a statement on its website.

Through the software Infotel would be able to offer a similar service to Skype a widely known Internet-based video-conferencing application. At present, there is only one smartphone available in the market that runs on the 2300 MHz band, the frequency on which 4G services will be offered in the country.

The RIL-owned Infotel Broadband had in 2010 won the licence to offer 4G services nationally and their launch is being tracked eagerly as the company is expected to shake up the telecom market in the same way it did a decade ago when it rolled out its low-cost voice services. Analysts expect the company to offer very high-speed internet services at cheap rates, substantially reducing the costs of accessing data while significantly increasing the speed of data download and delivery.

Existing regulations do not allow 4G operators to provide voice call facilities, but the new telecom policy, that is slated to come into effect in 2013, states that companies can offer all forms of communication services after migrating to an Unified License (UL). The telecom department (DoT) will unveil the migration methodology for the UL regime next year.

Infotel Broadband had recently sought the telecom department's approval for testing voice calls in the 2300 MHz fourth generation band. The company had also demanded that it be allocated number series to test the newly developed Voice over LTE (VoLTE) technology.

The company is expected to first roll-out 4G services in Delhi and Mumbai. Company officials and vendors confirmed that the task of laying fibre optic cable networks had begun in these cities. It has also entered into contracts with Ericcson, Samsung, IBM, and Microsoft for building networks, providing security solutions and for IT integration.


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