The Hindu Business Line : MTNL's CDMA service to retain limited mobility

IT might seem odd that the limited mobility feature that once restricted CDMA operators to local calling zones is actually going to be retained by MTNL for Garuda, its CDMA service.

But in doing so, the company will be allowed to charge landline tariffs, and will be able to position Garuda as the most affordable wireless service in Mumbai and Delhi, according to Mr Kuldeep Goyal, Executive Director, MTNL Mumbai.

As a "poor man's wireless option", Garuda will be a more attractive offer for certain sections of subscribers, said another official with MTNL.

Target segments are housewives, taxi drivers, plumbers, travelling salesmen, and those who do not move out of the city zone.

MTNL hopes to establish a good subscriber base for Garuda from the lower end of the market, both fresh subscribers as well as those of other operators, he said.

The Garuda service provides mobility in Mumbai and Navi Mumbai, and in the Delhi region, said Mr Goyal.

It might be recalled that before the introduction of the universal access licence, CDMA operators could offer mobility only within a short distance calling area (SDCA).

The trade-off for limited mobility had been that operators could charge landline rates.

Those CDMA operators who applied for a universal access licence to offer full mobility now charge tariffs that are more or less on par with their GSM counterparts, plan for comparable plan.

On the other hand, the fixed wireless phone (FWP) offered by CDMA operators, which is offered at landline rates, is actually meant to be a landline.

This is the reason why operators who advertised the service as offering mobility at landline rates were pulled up by the TRAI some time ago.

The FWP is meant to be mobile only within one's residential or business area, much like a cordless phone; its wireless nature is due to the fact that there is no wireline connecting it from the exchange to the point of use.

MTNL's FWP too is based on the CDMA 2000 1x technology.

"But Garuda will fit in a niche of its own, offering full mobility within the city, but at landline rates, of Rs. 1.20 for three minutes (to landline phones)," said Mr Goyal.

Sales of Garuda have been near stagnant for some time now, largely due to non-availability of connections.

MTNL has around two lakh Garuda subscribers in Delhi and Mumbai. "But this will change in a few months," said Mr Goyal, with MTNL having tendered for equipment for four lakh lines each in Delhi and Mumbai.

Of course, this is small compared to MTNL's GSM plans, for which there are expansion plans for four million lines each in Delhi and Mumbai over the next two years; these are to be 3G-enabled as well.

MTNL has added over three lakh subscribers over the last six months in the GSM sector, and has notched up the highest growth among GSM operators in Mumbai and Delhi, said Mr Goyal.

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

Stories in this Section
Division of assets: Ambanis to resume talks after May 21

Ratan Tata favours entry fee, revenue share for 3G spectrum

MTNL's CDMA service to retain limited mobility

Pak chana coming soon to your kitchen

Inflation declines on drop in food prices

Long wait ahead for US tourist visa applicants

TRAI proposes cut in spectrum charges — No entry fee for 3G services for existing operators

What 3G means

Penalty collected from spurious drug makers to be paid to patients