Reliance Communications to restructure functioning; To split CDMA and GSM services

While Reliance Communications seems to be growing invariably in the country, the company may be undergoing restructuring, which would separate the GSM sector from the CDMA operations.


According to sources, Reliance Communication would restructure the company by untying the expanding GSM business from the sheathing CDMA operations, which allegedly would be later sold to clear the long-standing debts. After the split, Chief Marketing Officer, Nilanjan Mukherjee, would head the CDMA operations while Ramesh Menon, former Airtel zonal head, would head the GSM operation. Both would finally work under Gurdeep Singh, who is the chief of the Reliance Communications wireless operations.

With the new restructuring, not only would the GSM and CDMA technologies would be alienated but also circle specific managements would be created to carry through more regional focused strategies and plans. Reliance had started with telecom services on the CDMA platform and was once the second largest mobile phone operator in India but eventually slipped to the fourth rank. As of now, 80 percent mobile subscribers in India are based on GSM technology, while just 20 percent still use the CDMA services, making it quite unprofitable.