Business Daily from THE HINDU group of publications
Thursday, Aug 03, 2006
Business Daily from THE HINDU group of publications Thursday, Aug 03, 2006 |
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Telecommunications Info-Tech - Outlook BSNL to roll out fixed wireless telephones on GSM tech Thomas K. Thomas
The move also assumes significance in the light of recent announcement from Reliance Communications applying for a pan-India cellular licence for GSM-based services.
New Delhi , Aug. 2 In a shift in strategy, the state-owned Bharat Sanchar Nigam Ltd (BSNL) has decided to roll out wireless in local loop based fixed wireless telephone services using the GSM technology across the country. The company had been offering the fixed wireless telephone services using the CDMA technology, until now, and has nearly two million subscribers. BSNL has sent an urgent note to all the Circle heads to report the number of fixed cellular terminals required to provide the fixed wireless services. BSNL sources said that the decision was taken to roll out GSM-based fixed telephone services on July 27 to counter competition from Airtel, which has recently launched fixed wireless services on its pan-India GSM network.
Cost advantage
BSNL officials said that the tariffs being offered by Airtel were very aggressive and the PSU decided to follow suit to arrest any possibility of a churn from its 35 million fixed line subscribers. They said that BSNL's CDMA network was not adequate to take on the private operator compared to its GSM footprint across more than 20 States. BSNL officials also said that the decision to use GSM network was also due to the cost advantage apart from the choice of cheaper phone terminals available when compared to CDMA. The latest move could mean that BSNL may not expand its CDMA network as it was using the technology to offer fixed wireless services only. Until now, BSNL's strategy was to offer full mobile services using the GSM technology and FWT on CDMA. The move also assumes significance in the light of recent announcement from the largest CDMA operator in the country, Reliance Communications, applying for for a pan-India cellular licence for GSM-based services. BSNL officials said that its existing CDMA network would continue to be functional. In a note sent to Circle head on July 28, BSNL said, "Airtel has started providing Fixed Phones using GSM technology (FCTs) under their license areas and is targeting the fixed lines customers with very aggressive tariffs. This point has also come during the discussions in the management meeting held on July 27, 2006. It was decided that BSNL should also introduce Fixed Telephones under GSM, that is, FCTs as a product in the market. The requirement for Fixed Cellular Terminals (GSM) in order to provide Fixed Telephone line in GSM coverage area, on demand may be communicated to this office urgently," said a BSNL internal note.
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