Tag Archives: Reliance Jio 4G launch

Reliance Jio 4G in trouble again after CAG’s suggestion

On the one hand where Reliance Jio is working hard to launch its 4G services as soon as possible, CAG’s draft report put RIL again in trouble on other hand. Yesterday CAG drafted a report to DoT suggesting them to cancel the nationwide Broadband spectrum which was allotted to Reliance Jio (IBSPL earlier) back in 2010. This suggestion was made by saying that RIL violated the rules and allegedly rigged the auction.

For your knowledge we remind you that in 2010 when Pan India  BWA auction a company viz. Infotel Broadband services (IBSPL) won the PAN India BWA licence worth rupees of 12,847 Cr, which was 5000 times more than the net worth of company. When the action ended, Reliance Industries limited acquired the IBSPL on the same day.

The CAG said with its draft report that DoT in 2010 failed to recognize the rigging of the auction right from beginning of the BWA  auction in which a small ISP, Infotel Broadband Services (IBSPL) emerged winner of pan-India broadband spectrum by paying 5,000 times of its net worth.

When asked to RIL on this matter they said,”There is no final CAG report that we are aware of. That said we reject any suggestion whereby spectrum was acquired in any manner other than through a transparent bidding process duly supervised by Government of India.”

Summery of CAG’s Report on Reliance Jio

CAG said IBSPL was ranked 150th in the list of ISPs, submitted an earnest money deposit of Rs 252.50 crore through the covert and overt assistance of third-party / private bank, bid for Rs 12,847.77 crore (5000 times of its net worth) for pan-India spectrum and then sold the company on the day of completion of the auction

This indicated IBSPL’s collusion and sharing of the confidential information with a third-party in violation of auction conditions, said CAG.

 

 

In replay to that RIL spokesperson said,”EMD was based on specific deposit requirement for each telecom circle. Accordingly Infotel Broadband Services Pvt Ltd (IBSPL) submitted a Bank Guarantee of Rs 253 crore in format as prescribed in NIA. Since no money was deposited as EMD, the question of source of deposit does not arise.”

 

Well this is clear that both IBSPL and Reliance played a fair trick in the BWA spectrum of 2010 but its is still not looking illegal in any manner. Reliance Jio will be definitely worried right now but we will still have to wait and watch DoT’s reaction on this complete matter.

Reliance Jio will soon come out with Pan India 4G services

Mukesh Ambani owned Reliance Jio is setting ground base for launch of its Pan India 4G services. In many areas they are putting cable fiber and making thee network strong before its launch. Yesterday reliance Jio took a big step by partnering with Viom networks for its 42,000 towers across India to provide services of Reliance Jio 4G through them.

Reliance Jio have 4G licences for all the telecom circles of India. The company is setting all the basic Infrastructure and seem to launch its 4G services in all states of India latest by August 2014. A few days ago Reliance Jio made agreement with Bharti Infratel for its towers. Now after their agreement with Viom networks and their aggressive bidding in 2014 telecom auction shows that they will soon surprise all telecom users of India by launching Pan India services.

Reliance Jio 4g with viom and bharti infratel

Reliance Jio launched its 4G service for testing through the Wi-Fi service in Ahmadabad. Company is providing Wi-Fi services over 4G which is now limited to speeds of 40 Mbps. Moreover reliance Jio is testing 4G service on their level in Delhi, Mumbai and Jamnagar.

It is yet not clear that Reliance Jio will launch voice service over its 4G networks, as 4G mobile handsets are very rare in any of the telecom circle of India. May be the service will be given for Broadband Internet usage using a wireless modem just like what Airtel is doing in 6 cities where it provide 4G. Though Airtel recently launched 4G service over mobile in Bangalore and became the first one to do so.

But it is very clear that with the help of Airtel Infratel and Viom Networks towers Reliance Jio 4G will make a unmatched debut in Pan India market. Broadband sector will get great competition by Reliance Jio 4G services.

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