RIL’s Latest Advent: 4G Revolution and Low Cost Tablets

The Telecom subsidiary of Mukesh Ambani owned Reliance Industries Limited aims at spreading a4G revolution in India. By early next year, they plan to offer high speed data services on reasonably priced tablets. Mid 2012, they intend to scale it up to a countrywide network.


RIL’s major plan is to offer fourth generation enabled data cards to be plugged into computers and laptops, and provide data connectivity with high speeds of 50-100 Mbps. This will enable data connectivity much faster than what 3G offers currently, at lower prices.


RIL also plans to offer tablets at Rs.3,000 or even lower to attract more customers. This strategy of offering products at a low price to gain more customers is similar to their move in 2003, when it took mobile phones to the common masses with its ‘Monsoon Hungama’ offer. The ‘Monsoon Hungama’ offer won Reliance 1 million customers in just 10 days, as it offered handsets at Rs.501 only.


RIL has examined prototypes of tablets from over 15 Taiwanese and Chinese original equipment, and chooses to focus on 3 to 4 models. These are likely to be priced between Rs. 3000 and Rs. 8000.


In order to acquire content for its wireless broadband offerings, Reliance Industries Limited is in talks with several media and entertainment companies. Walt Disney’s Indian venture UTV software is one among these companies, and their deal with RIL is close to being finalized. RIL will be able to offer games, entertainment and applications for younger customers through this deal.


A spokesperson from the company declined to comment and said that Reliance would not comment on speculation. However, as per an update on RIL’s Telecom business, their Telecom unit is ‘in the process of setting up a world-class broadband wireless network using state-of-the-art technologies and finalizing the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India’.


For RIL’s broadband gear, the company is in the final phase of talks with three vendors – Alcatel Lucent, Ericsson and China’s Huawei.We are unable to comment if they will be signing contract with a single vendor, or all three.


It is expected that RIL go in for pan-India tower deals on regional basis. They will tie up with the tower firm that has maximum reach and density in that particular zone.


Reliance is certainly working out of its way for the success of their newest venture. It hopes to regaininvestors’ confidence that has been hampered by the criticism from the Comptroller and Auditor General.

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