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Home > Business > Business Headline > Report

Motorola, Nokia sets for Reliance

Reeba Zachariah & Hemangi Balse | March 24, 2003 13:38 IST

International mobile phone makers Motorola Inc and Nokia Corp will soon foray into the code division multiple access handset market in India. The two companies are talking to Reliance Infocomm to supply CDMA handsets.

These global cellphone makers are aiming at a substantial share of the global CDMA handset market and the key growth-driving markets are expected to be the United States, Latin America, India and China.

While Nokia has identified the models that are to be offered to Reliance Infocomm, Motorola is working out the specifications needed to cater to Reliance's requirements.

Confirming the development, Pramod Saxena, country head of Motorola India, said, "We are in talks with Reliance Infocomm for CDMA handsets and are discussing their (Reliance's) requirements and whether Motorola can supply them."

Nokia officials were not available for comment despite repeated attempts to contact them. Sources close to the development told Business Standard that Nokia had lined up several CDMA handset models and was waiting for a nod from Reliance Infocomm. "Nokia is readying itself to launch its CDMA handsets in India," the source pointed out.

A Reliance Infocomm spokesperson said, "The company is planning to introduce new handset models. We may introduce new handsets soon, probably after the Dhirubhai Ambani Pioneer offer closes." However, he did not confirm that the company was in discussions with Motorola and Nokia for handsets.

With its limited mobility services expected to begin commercial operations from April 1, Reliance Infocomm is expanding its vendor chain for handsets. Earlier, it had entered into a $ 500 million contract with two Korean vendors, LG and Samsung, to supply over 6 million handsets.

Reliance Infocomm has offered its subscribers free handsets under its Dhirubhai Ambani Pioneer offer, at an imputed value of Rs 10,500 each. The company is, however, planning to extend the offer in select areas where the response to its limited mobility services has been poor.


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