Right frequency for RCOM- 1800 or 900

Reliance's latest move to request for the extended GSM 900 MHz frequency band, instead of the 1800MHz for its GSM service is no surprise. It has been proven beyond doubt that the 1800 MHz is much less efficient than the 900 MHz band. Ask any of the fourth cellular operator such as Idea Cellular and they will tell you how they got a raw deal when the Government gave them spectrum in the 1800 MHz band. But what has surprised most experts is that RCOM has sought capacity in the 900 MHz band despite the knowledge that eGSM band may not be available anywhere in the near future. The Wireless Planning Coordination wing has not even mentioned the use of the eGSM band in the ongoing discussions for finalising the new national frequency allocation plan. It gets even more surprising that RCOM has asked for a band where there is only a maximum of 2MHz left (compared to 4.4 MHz it has got in the 1800 MHz). So is Reliance willing to wait till this band is cleared up for launching its GSM service? Sources claiming to know RCOM's gameplan say that the strategy is two pronged. First the application for eGSM band has been made so that the Government starts thinking about vacating this band. 900 Mhz is a huge advantage for existing GSM operators such as Airtel and Vodafone as they can start offering cheaper 3G services using this band compared to the 2.1 GHz band. So whoever has capacity in the 900 MHz band has a leg up on 3G. RCOM wants to have that advantage. The second part of its strategy is that it wants to be sure that when the Government decides to release the eGSM band it should either go to RCOM or no one. In other words by applying now RCOM has made sure that it claims first right ahead of the all the new operators who are also waiting for start up spectrum. Even if RCOM starts roll using the 1800 Mhz now, it can easily upgrade its network with minimum additional investment, for use in the more lucrative 900 MHz. Of course the existing GSM operators have already seen through the game plan and have told DoT that there will be more blood shed on the telecoms street if eGSM is given away to RCOM.