RIL Delays 4G Launch: Report

Reliance Industries Ltd. (RIL), the only company having Broadband Wireless Access (BWA) spectrum in all 22 circles, has postponed its 4G services launch plan, reports The Telegraph.

RIL is likely to postpone the launch of 4G services until some time in the 2013-14 fiscal year, dashing hopes that it would enter the market during 2012. This is mainly because the company has decided to set up its own towers and optic fiber network to support the launch of its LTE TDD services.

However, there might be another reason for the delay: The company might be eyeing the 700MHz spectrum, which is believed to be more efficient and requires less capex.

RIL's arch rival, Bharti Airtel Ltd., has already launched 4G services in the cities of Bengaluru and Kolkata. Once its deal to acquire additional spectrum from Qualcomm Inc. is concluded, Bharti is likely to launch 4G services in the coveted cities of Delhi and Mumbai by the end of this year. Bharti has recently brought down the total cost of ownership of 4G services by cutting its device prices. (See 4 Cheers For Bharti! and Bharti Slashes 4G Device Prices.)

News of RIL's delayed launch will be disappointing for the radio access network equipment vendors that have been fighting tooth and nail for the prestigious contract. (See The Big Fight For LTE Deals.)

But the delay wil be music to Bharti's ears. In the absence of a strong competitor, Bharti would be in a comfortable position to leverage its early mover advantage. Whatever the case, the year is going to be exciting as the 4G landscape is continuously changing.

Gagandeep Kaur, Editor, Light Reading India