Reliance to restructure GSM and CDMA business units

Reliance to restructure GSM and CDMA business units

Indian telecommunications provider Reliance Communications is changing its management structure by separating its growing GSM business from its CDMA operations.

Sources report the company took the view that the CDMA unit requires a strategy independent of the GSM unit.

CDMA is lagging behind as a technology in India, with nearly 80% of mobile subscribers in the country using the more popular GSM technology.

Rumours say that Reliance could also attempt to sell the CDMA unit, which has spectrum and assets useful for launching 3G services. A sale of the CDMA unit would help lower company debt.

Nilanjan Mukherjee – currently the company’s CMO – will head the CDMA business, while former Bharti Airtel executive Ramesh Menon will lead the GSM unit.

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