[May 18, 2013] RCOM ties up with Loop for 2G roaming [India Business] [Times of India] Tweet (Times of India Via Acquire Media NewsEdge) MUMBAI: On the back of signing a pan-India 2G roaming agreement with Aircel recently, Anil Ambani-owned Reliance Communications has now struck a similar intra-circle roaming pact with Loop Mobile as it attempts to cut costs and bring efficiency into its existing network. The debt laden operator had earlier struck a Rs 1,200 crore deal for sharing its optic fibre network with elder brother Mukesh Ambani's Reliance Jio Infocomm. This ongoing network expansion is aimed at pushing the growth plans for the telco as it aims to position itself strongly in the lucrative post-paid, corporate and SME segments. A company official said the agreement with Loop will give RCom's 2G GSM customers seamless experience on Loop's 900 MHz network in the city. This will also help the telco save around Rs 2,000 crore in costs as it opts for the pay per use model and give it access to 4,000 base stations. Rcom aims to have in place 10,000 base stations after it has closed all its agreements with rival operators. "We feel this is the right time for network expansion as the hyper competition is no longer there in the market. The 900 Mhz network will help us drive data and bring better coverage to our customers. This will immensely enhance 2G customer experience," said Gurdeep Singh, CEO, wireless, Rcom while talking to TOI. He said these tie-ups with operators will increase the telco's revenue market share and subscriber numbers. An apex court order in February last year led to the cancellation of 122 mobile permits post which the competitive intensity in the Indian telecom market came down with operators such as Etisalat and STel shutting down their operations. Rcom has also been in talks to sell its subsidiary Reliance Globalcom, a global communications service provider in attempt to pair its Rs 37,000 crore debt. To address its falling profitability, Rcom has been hiking call tariffs, the last one being as much as 30% across the country for some of its prepaid plans. The operator had increased headline tariffs last year in October when it hiked call rates from 1.2 to 1.5 paisa per second.Over the last year, Indian mobile phone companies have withdrawn free minutes and heavy discounting in an industry plagued by regulatory and legal hurdles. (c) 2013 Bennett, Coleman & Company Limited [ Back To TMCnet.com's Homepage ]