RCL stuck on choice of tech

REGULATORY impediments could be a major area of concern for Reliance Communications Ltd's (RCL) in its expansion plans using the global system for mobile communications (GSM) technology.
RCL is serious about its plans to roll out services using the GSM technology but is likely to be selective, as it believes that there is a niche of GSM consumers who would not turn to code division multiple access (CDMA) technology and hence wants to address that market.
In a report released on Friday by J M Morgan Stanley (JMMS), it has cautioned that based on its discussions with regulators, “There is a grey area as to whether operators will be allowed to operate two technologies simultaneously under one licence. While the licence agreement gives an operator the right to choose any technology, it does not indicate whether more than one technology can be selected.” JMMS, citing media reports about RCL moving out of CDMA totally and investing heavily in GSM has stated “RCL is serious about its GSM plans but selective. The company mentioned it has applied for licensing selectively in Mumbai, Delhi and other circles for the time being, under the 1800 Megahertz spectrum. Since RCL already has the Universal Access License (UASL), it does not expect to pay any additional amount on the license fee."
JMMS pointed out that "If the company does not get the additional GSM spectrum, the limited size of the spectrum "pie" will reduce for the existing GSM players."