Reliance splits GSM and CDMA units – report

Reliance splits GSM and CDMA units – report

13 JAN 2014
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India’s Reliance Communications is apparently in the midst of a new round of restructuring which will see its GSM and CDMA units split, with speculation that the latter could subsequently be sold in order to cut the operator’s debt.

According to India’s Economic Times, Nilanjan Mukherjee, CMO of Reliance Communications, is set to head the CDMA unit, while former Bharti Airtel regional head Ramesh Menon will join to run the GSM business. Both report to Gurdeep Singh, the current head of wireless operations for the company.

It was suggested that the separation of the business comes as shrinkage for the CDMA unit and growth of the GSM activities mean that both require different strategies. A buyer may be sought for the CDMA unit, which has spectrum and assets that may appeal to an operator launching 3G services.

The Economic Times also said that the restructure will create regional management teams to implement more focused strategies, moving away from a more centralised model.

According to reports last year, Reliance is mulling the sale of units such as its international business and its satellite TV business, in order to reduce its debt burden.

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