Reliance communication launches GSM service on December 30, 2008


On December 28, 2003 Reliance changed the face of telecom in India with an affordable mobile phone service. Their business model was compelling; ‘phone call at the cost of a post card’. Within five years Reliance has managed a 60 million customer base. Earlier, Reliance bet on CDMA that accounts for less than 20% of the global mobile telecom, business. On December 30, 2008, Reliance started GSM service – that accounts for 80% of the world’s mobile population.

 

With investment of Rs 10,000 Crores ($ 2 billion) Reliance communications has launched the service in 11,000 towns within a year of getting its license (January 2008). They also introduced “customer experience” card that permits free calls worth Rs 5/day for 90 days, for a very low Rs 25/ – entry fee. It will be interesting to see the way Reliance grows in this segment in the next 12 months.


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