At present, RIL faces multiple challenges on its telecom business.
These include lack of towers, non-availability of cheap fourth generation (4G)-compliant handsets and coverage challenges for the 2,300 MHz spectrum allotted.
This short-range spectrum was allotted to RIL when it bought a broadband wireless access licence in 2010.
Analysts say the company will have to bid for the 700 MHz band of spectrum which the government plans to auction within a year.
The coverage advantage of 700 MHz will complement the small range of frequency of 2300 MHz, says an analyst with brokerage firm IIFL.
“In 700 MHz, the payout could be $3-5 billion for 10 MHz,” the analyst says.
RIL did not reply to a mail seeking information on how it would address the spectrum issue. In its second quarter results announced on Tuesday, the company said it had raised its employee count from 700 last year to a little over 4,000.
“The key leadership positions required to execute the project are in place. RJIL (Reliance Jio) has finalised the key vendor and supplier partnerships required for the launch of our services and is making rapid progress in building the critical infrastructure needed,” it said.
RIL has signed an infrastructure sharing agreement with Reliance Communications (RCom, of the Dhirubhai Ambani group)
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