Tatas Tele not to switch over to GSM

The Tata group, which provides CDMA-based service through Tata Teleservices (Maharashtra) and Tata Teleservices Ltd, will not switch over to GSM technology, unlike its competitor Reliance Communications, which intends to expand its presence in a single technology.
Both the companies are planning to garner a 100-million subscriber base in the next five years.
“CDMA is a superior technology for telephony operations and as the subscriber growth increases manifold, this technology is better than GSM. Moreover, CDMA is also the techology of the future as it can provide quality services, support broadband and other emerging technologies in the telecom space,” a Tata group source said.
This technology (CDMA) will also be ideal for launching 3G services, including high-speed broadband and streaming video among others.
The Tata group companies would be looking at offering services over wideband-CDMA (WCDMA), the next generation of CDMA technology - EvDO, that supports 3G cellular network, 3G UMTA, while CDMA is also allied with 2G GSM standard, he said.
According to industry sources, the Tata group has a good relationship with US-based Qualcomm - the developer of the technology. The company gets royalty from the Tata group for every handset sold in the country.
At present, both the Tata group companies use 800 MHz spectrum for their operations in the country, and have operations in 20 circles, excluding the North-East and Jammu & Kashmir. They have over 10 million customers in the country.
The companies are targeting 20 per cent marketshare in the country by focusing more on rural markets as well as two metros - Mumbai and Delhi. They enjoy 12 per cent share of the market.
Apart from a commitment of investing Rs 4,000 crore, they are looking at bringing in new technologies, increasing its value added service (VAS) offerings and introduction of a range of entry-level handsets.
Reliance Communications has sought allocation of 1,800 MHz spectrum from the Department of Telecommunications that enables it to provide both GSM and CDMA services in the country.
Apart from Reliance, stated-ownd Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd are other companies providing services using both the technologies, albiet on a smaller basis.