The Hindu Business Line : Russia’s Sistema opts for CDMA spectrum

Awaits signal
By opting for CDMA spectrum, Sistame may now be able to roll out mobile services much earlier
CDMA technology may be better positioned to leverage the third generation mobile services

Thomas K Thomas

New Delhi, March 24 In a bid to beat the huge demand for GSM (Global System for Mobile communications) spectrum, Russian conglomerate Sistema has sought bandwidth for deploying CDMA-based mobile services across the country.

Sistema is one of the companies which recently got new licences for offering mobile services. The company had earlier struck a joint venture partnership with Rajiv Mehrotra-promoted Shyam Telelink for foraying into the fastest growing mobile market in the world.

With as many as five new operators claiming spectrum for GSM technology, Sistema would have had to wait at least a year if it had chosen to offer GSM-based mobile services. Sistema was among the last few to get the licence and since the Government is allocating spectrum on first come first served basis it would have found itself at the back of the line for the scarce GSM spectrum.

By opting for CDMA (Code Division Multiple Access) spectrum, Sistame may now be able to roll out mobile services much earlier. At present there are not too many takers for CDMA spectrum. While existing CDMA players, including Reliance Communications and Tata Teleservices, are shifting focus to rolling out GSM-based mobile services, the new licence holders are also going after GSM technology.

State-owned Bharat Sanchar Nigam Ltd is the only major operator which has announced investment in the CDMA segment. Therefore, there may be spectrum in the CDMA band available for new players such as Sistema.

Analysts pointed out that CDMA technology, being a data-friendly platform, may be better positioned to leverage the third generation mobile services, expected to be launched in India next year.

Cheaper than GSM

They also said that since CDMA mobile handsets are much cheaper than GSM ones it will make it easier for Sistema to tap the entry level market once it launches the service. Sistema has already announced $5 billion investment in setting up pan Indian mobile network. Both Shyam and Sistema have experience in rolling out CDMA-based network. While Shyam operates basic telephone services in Rajasthan using the CDMA technology, Sistema is using the technology in Eastern European countries and in Russia.

Sistema’s most valuable asset Mobile TeleSystems also has CDMA-based mobile operations. The Russian company was the first foreign player to invest in the Indian telecom sector after the Government raised the foreign direct investment cap for the telecom sector from 49 per cent to 74 per cent.

More Stories on : Telecommunications | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page