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To: Eric L who wrote (2764)	1/6/2003 10:10:30 AM
From: Eric L	Read Replies (1) \| Respond to of 9255

GSM Vs CDMA in India >> Level Playing Field Is The Logical Way Ahead In GSM Vs CDMA Battle Ashu Kumar New Delhi The Financial Express January 06, 2003 financialexpress.com The fuss over limited mobility — that has been troubling telecom operators, regulators and policy makers for a long time — is now slowly leading the Indian telecommunication industry towards a state of equilibrium. A closer look at recent events in the Indian telecom space clearly indicate that boundaries between the full mobility and wireless in local loop (WLL) services will soon be blurred in terms of policy, pricing and technology. This would mean that while global system for mobile communication (GSM) operators will enter the limited mobility services, the wireless in local loop (WLL) players will also eventually become the full mobility players over time. Interestingly, technology does not stop either GSM or CDMA (Code Division Multiple Access) WLL operators from playing on each other’s turfs which are currently hedged by policy. A move to pricing parity is already visible with the response of cellular operators who have cut down their long distance charges. While the different technologies will remain in the background, the pricing of a service will be comparable and determined by the value it offers to subscribers. This leaves policy and regulations as the only barrier between GSM full mobility and CDMA limited mobility services. But recent developments seem to indicate that the legal battle between the two will finally demolish this wall. The Supreme Court judgment has certainly recognised the need to create a level playing field. The apex court does not put a question mark on allowing limited mobility, but it heeds the demand of mobile operators to seek facilities that have been given to limited mobility operators by the government in terms of access charges, licence fees and compliance with village public telephone (VPT) obligations. If the Telecom Dispute Settlement Appellate Tribunal (TDSAT) — which has been asked by the court to consider the case afresh — takes a cue from the judgment, cellular operators may walk away with a few more concessions but they will have to live with limited mobility. However, it may irk limited mobility operators and they may also demand for level playing field like permission to offer roaming. Finally, the resolution would probably bridge the gap in licence conditions and regulatory frameworks of cellular and limited mobility services making them virtually the same. Even if the legal process takes time or goes in favour of any one side, the grounds are being levelled by other means. Union minister for communication Pramod Mahajan has already spoken of allowing unlimited players in cellular services as is the case in fixed and limited mobility services. He is also in favour of a marginal licence fee for new entrants. He has cleared the file on this and sought the recommendation of Telecom Regulatory Authority of India (Trai). If the proposal is cleared, it will pave the way for easy entry of fixed and limited mobility operators in cellular services. As both GSM and CDMA are capable of offering full mobility as well as limited mobility, the latter will not have any problem switching to full mobility cellular services as they are already equipped to offer unlimited mobility. On the other hand, cellular operators are getting ready to offer limited mobility through their existing GSM networks. They have two options: either make an incremental investment in a new GSM base station and offer limited mobility on the existing 900/1800 MHz spectrum or acquire a basic licence and deploy additional GSM network equipments to offer limited mobility on 800 MHz. Nokia and Ericsson confirm the availability of technology to offer limited mobility on GSM. This shows that cellular operators can also jump into limited mobility services if the verdict goes against them. With the gap in tariffs of basic, limited mobility and cellular services closing fast in the backdrop of converging technology and regulation, the telecom landscape of India is in for a churn again. The survivors of the shake up, however, will be companies offering integrated service buckets full of options to the consumers to suit their need and pockets. << >> WLL Threat: Cellular Cos In Direct Marketing Overdrive Lalitha Srinivasan New Delhi The Financial Express January 06, 2003 Mumbai: In a bid to retain its existing customers, major cellular companies are now opting for direct marketing plans and educational programmes to combat the WLL threat. Incidentally, some cell firms are even educating subscribers about the benefits of GSM technology over WLL (wireless local loop). After the price war, cellular companies will shift their focus to aggressive marketing plans, predict market analysts. For starters, Airtel has already started sending direct mailers to its existing customers across the country. According to Airtel customers in Mumbai, Bharti’s direct mailers talk about the company’s new offering which are in the pipeline. “In addition, the mailers also highlight the benefits of GSM over WLL. As per the mailer, 80 per cent of the world’s mobile population prefers GSM over WLL,” informs an Airtel user. When contacted by FE, Bharti was reluctant to divulge further details on its ‘direct marketing’ initiatives. So, what’s going to be Bharti’s gameplan to take on the new entrant, Reliance Infocomm? Says Bharti Cellular Ltd chief operating officer Mumbai Circle Atul Jhamb: “The entry of new operators will lead to a significant growth in the market. With a presence across 16 states in India, we are in a strong position to take full advantage of this growth. Also we provide GSM that offers unlimited mobility and the freedom of choice,” explains Mr Jhamb. Industry sources say that Bharti has plans to step up its online marketing plans as it already has a strong data base in place. With the entry of a new player in the over-crowded category, BPL Mobile is also stepping up its marketing plans to retain customers. Says BPL Mobile president and COO Deepak Varma: “Conventional wisdom suggests that all mobile technologies are the same, therefore all networks deliver the same products and services with tariffs and prices being the only differentiators. But nothing is further from the truth.” Mr Varma believes that ‘service’ will be the key differentiator in the current scenario. “And BPL Mobile is delivering service at the subscriber’s doorstep by increasing customer touch points to 75 outlets—this includes 21 BPL Mobile galleries and 54 exclusive BPL Mobile shops,” he adds. As a part of its marketing strategy, BPL Mobile also sends direct mailers to its customers informing them about the latest in services and applications in the cellular industry.” In addition we clear myths about various technologies and services too. I think a mobile service or experience is the ‘experiential sum’ of the brand experience which includes anticipating and meeting consumer needs,” elaborates Mr Varma. As for Hutch’s marketing plans, says Ogilvy & Mather India executive director Nishi Suri (the ad agency which handles the advertising account of Orange): “Orange will ensure that it has a competitive edge with effective marketing plans. Today, customers are smart enough to figure out the value-for-money equation between the GSM and WLL technology. With competition intensifying in the cellular industry, it’s customers who’ll reap rich benefits in the new year. << - Eric -