To: r.edwards who wrote (66696 ) 2/14/2000 11:26:00 AM From: recycled_electron Read Replies (1) | Respond to of 152472
MTNL will go cellular in Delhi, Mumbai by June... As a wireless technology, CDMA has been in India since 1994. The hope has always been that the laws of scale and economy will eventually pave the way for widespread use of CDMA in both WLL and Cellular applications in India. Consider the following comments on the past performance of wireless technologies in India: 1. GSM was the mandated wireless standard for cellular (till now) and CDMA was one of the WLL technologies (DECT was the other one, I believe). GSM networks have grown to capture the "need-to-be-mobile" market (executives, doctors, traders etc.). But future growth potential now appears to be limited, because the "wanna-be-mobile" market is looking for bargains on mobile handsets, call rates that existing GSM operators would be unable to support financially. The *huge* market that everyone talks about when discussing India seems to be for those future operators who shall be able to significantly beat the "GSM rates". 2. On the other hand, WLL networks never really took off because of the tiny systems that were initially deployed - representing a grossly disproportional return on initial capital investment. WLL was initially a government prerogative. The government wanted to be cautious about introducing new technology - pilot projects (like the QCOM network in New Delhi since 1996) were used with few hundreds and later few thousands of subscribers - nothing that would justify initial capital outlay of a few millions of $s. WLL was never really given a chance to grow. But people did notice the excellent voice quality, high call completion rates, rapid installation of initial service etc. Recently, unconfirmed rumors suggest that the TRAI (the telecom regulatory wing of the Govt. of India) has adopted a technology-neutral stance for future growth of cellular networks. MTNL has seized this opportunity to expand CDMA WLL networks to offer both "fixed-wireless" (wireless local loop) and some limited mobility (believe GSM operators are now crying foul since MTNL claims to be able to offer lower rates on mobile-CDMA calling-plans and initial handset costs). Another unconfirmed rumor is that LGIC (of Korea) has been contracted to supply good quantities of CDMA WLL terminals. This, along with the use of Motorola/Fujitsu infrastructure, seems to indicate that MTNL is now serious about expanding its hybrid WLL/Mobile CDMA networks into other metropolitan areas. Is MTNL trying to vie for the "wanne-be-mobile" market? Is MTNL finally beginning to believe that they need larger #s of subscribers than a few hundreds to really make money off of any wireless network? For the sake of CDMA and growth of wireless usage in India, one would hope that the answer to both questions is yes. Regards, SRoy ps. Mobile users can indeed be supported in a primarily WiLL CDMA network. The tradeoff is between capacity and mobility (handoff legs used by mobile users temporarily use more basestation resources). But these can be balanced with proper network planning, achieving a network that can be predominantly WiLL with say 5-10% mobile users out of the supported customer base.