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RCom seals deal on network sharing with Loop Mobile [Financial Express (India)](Financial Express (India) Via Acquire Media NewsEdge) Reliance Communications (RCom) has entered into a 2G GSM intra-circle roaming (ICR) agreement with Mumbai-based Loop Mobile to share network in the 900 MHz spectrum in the Mumbai circle, according to people familiar with the matter. Both RCom and Loop Mobile have confirmed the deal. The move is seen as a smart one as the Anil Ambani promoted-RCom would now have access to all spectrum bands - 1800 MHz, 2.1 GHz, 800 MHz (CDMA) and the more efficient 900 MHz GSM band - in Mumbai. RCom, which recently closed a similar ICR deal with Aircel, is eyeing further such agreements with other telcos. While Rcom has spectrum in all the other bands in the Mumbai circle, it did not have it in the 900 Mhz band. RCom has sealed a deal with Loop Mobile for sharing towers and other equipment in the 900 MHZ spectrum, which will increase coverage especially for data and corporate users in the Mumbai circle, a person in the know of the deal said. "Reliance Communications has entered into a 2G GSM ICR agreement with Loop Mobile to offer RCom's post-paid customers wider and uninterrupted service and an unmatched data experience," an RCom spokesperson said. "We are talking with RCom for a roaming agreement in the Mumbai circle. We will have something concrete soon," Loop Mobile's chief operating officer, Surya Mahadevan, said. He did not give further details. Loop Mobile, which was BPL mobile formerly, has presence only in the Mumbai circle. Loop's main shareholders are Kiran Khaitan and her husband IP Khaitan. The company, which did not bid for 3G spectrum, holds 8 MHz of spectrum in the 900 MHz. The deal, once signed, would supplement RCom's prior ICR deal with Aircel to improve network coverage in eight circles. RCom is in talks with other operators as well to have similar arrangements. Such agreements will help RCom defer capital expenditure of R1,200 crore, and operating expenses of R500 crore, according to sources in the company. The company estimated FY14 capital expenditure at R1,500 crore, slightly lower than its capital expenditure of R1,550 crore during FY13. Analysts believe that such an agreement will help RCom subscribers in city pockets where it does not have a strong presence. Loop Mobile, they say, has a stronger coverage in the circle. RCom, which is the third-largest Indian telecom company by subscribers, has 6.1 million GSM and CDMA subscribers in the Mumbai circle. The exact number of GSM subscribers in the circle is not known. RCom is already extensively present in the 3G, 2G and CDMA platforms in Mumbai. RCom, which has a debt of R32,168 crore as on March 31, has been inking deals with various operators since the beginning of the year. Besides ICR agreements, RCom is also in talks with other operators regarding some of its subsidiaries. The company is in talks with private equity firm Samena Capital for selling stake in subsidiary Reliance Globalcom. Copyright 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com Credit: Vaishnavi Bala (c) 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com |