LEADCOM, a real growth company.

Here is a little more info on the new Reliance India Tender, something to add to the spice of 2007/8/9, and yes, due to the complex nature of certain aspects of it, Leadcom will should be involved with the winner/s whoever they might be (just like BSNL, whether its Ericsson/Nokia or Motorola, they would all use Leadcoms expertise).

Final court hearing for BSNL is 15th Jan 07, and all being well sub contracting can start soon after. Add into that the potential to award this Reliance tender as well (and given its India although it should be expected in Q1, it might be Q2), and Leadcom could be and should be rolling in large contracts in 2007. Its dissapointing BSNL did not come in 2006, but this is India and you cannot push the cow up a hill, however it now makes 2007 one potentially massive year for Leadcom.





World's biggest telecom tender from RCL

RASHMI PRATAP

TIMES NEWS NETWORK[ TUESDAY, DECEMBER 05, 2006 02:07:17 AM]

MUMBAI: Reliance Communications (RCL) is said to have invited bids for 90-100 million cellular lines in the world’s biggest telecom tender valued at nearly $7-8 billion.

The Anil Dhirubhai Ambani Group (ADAG) company and India’s second-largest wireless phone operator is said to have issued Request for Proposal (RFP) for nearly 70-75 million GSM lines and 20-25 million lines for WCDMA (wideband code division multiple access), a GSM 3G technology that increases data transmission rates.

The tender is bigger than that floated by Bharat Sanchar Nigam (BSNL) for 45.5 million GSM lines. This implies that RCL is looking at creating capacity for roping in 90-100 million users over the next 4-5 years. Ericsson had emerged as the lowest bidder at $107 per line for the BSNL tender. However, the Delhi High Court has stayed the tender after Motorola filed a petition.

The RCL tender may be valued at a lower end as the telco is likely to use its existing CDMA passive infrastructure for 30 million GSM lines. This reduces the cost to less than half. For the remaining new lines, the cost may be $100-110 per line, unless RCL is able to negotiate a better price.

At this price, it will be the biggest ever tender for equipment floated by any telecom operator in the world. It will demonstrate once again that the Indian market is the hottest and the most lucrative not just for service providers but also for equipment makers. The development also shows that RCL is serious about its GSM plans.

Early this year, it created a stir by applying for GSM licences in 21 circles covering almost the entire country. Major GSM equipment providers like Ericsson, Nokia and Motorola are believed to be interested in the tender. Globally, Swedish gear maker Ericsson and Finnish giant Nokia are the top two WCDMA equipment vendors.

The move is part of RCL’s increased focus on GSM, which is used by over 70% of telecom subscribers and is more cost effective than CDMA. RCL’s plans, however, depend on the availability and allocation of spectrum by DoT. RCL officials were not available for comment.

“The RFP was issued around three weeks ago. The contract is likely to be split between at least 3-4 vendors. No player can cater alone to the requirements,” said industry officials. The winners will be announced 4-5 months later. “After awarding the contract, it’ll take around 5-6 months for vendors to supply the first batch of equipment,” sources added.

RCL has CDMA capacity for 30 million subscribers and has already roped in about 24 million subscribers. It is now adding nearly a million users per month and at this rate, it will require more lines by the middle of next year.
Prices for telecom gear have nosedived over the past few years as vendors compete for space in the world’s fastest growing telecom market. In 2001, BSNL’s GSM tender was awarded at around $150 per line, a whopping $43 more than the bid made by Ericsson this time.

RCL is the only private operator in India having a presence in GSM as well as CDMA. It has eight circles in India with 3.2 million GSM subscribers (services being offered by Reliance Telecom) and has 24 million CDMA subscribers in 21 circles. RCL provides both GSM and CDMA services in six of these circles — Kolkata, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Orissa, Assam and North East.

RCL’s CDMA subscriber base is nearly eight times its GSM base. By moving into GSM, RCL will increase the size of its potential market, said industry experts. RCL has largely roped in low-end customers by offering low price voice and data services and is now keen to have high-end users on its network like Bharti Airtel. RCL had differences with US-based CDMA chipset giant Qualcomm over royalty payments to the latter.

GSM handset prices are at least $5-10 less than CDMA mobiles. “Globally, GSM enjoys scale and economy, making it more cost-effective than CDMA,” industry experts said.