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CDMA Vs GSM - What's in it for you?
Thomas K Thomas | March 11, 2003
When Reliance India Mobile released its first ads, the deal looked like a steal. STD at 40 paise a minute, free handset, just Rs 500 a month, et al. Now that other mobile services companies are into price-cutting themselves, it's time for a rethink.
If you are among those who still cannot decide whether to go in for Reliance's Code Division Multiple Access (CDMA)-based 'limited mobility' phones or the 'full-fledged' cellular phone services provided by GSM (Global System for Mobile) operators, welcome to the club.
Which one is cheaper, which one better? While a number of issues still need clarity from the regulatory angle, let us take a close look at what Reliance is offering compared to a GSM phone.
First, the service: one of the limitations of a WLL (limited mobility) phone is that the user cannot go beyond a short distance charging area (SDCA) - which is roughly a radius of 25 km.
While Reliance has attempted to overcome the problem by offering multiple registrations, this still is not the equivalent of the roaming services offered by cellular operators.
For instance, if a subscriber in Delhi travels frequently to Mumbai, Reliance will register the subscriber in both the cities at an additional cost of Rs 20 to Rs 30.
So when the subscriber is in Mumbai, all calls landing on the user's Delhi phone number will be forwarded to a pre-allocated number in Mumbai. The user does not have to change the handset or put in a new SIM card for availing this facility.
However, when the user is in transit between the two cities, the phone does not work, unlike a GSM phone which offers roaming anywhere in the world.
Reliance is also offering text messaging services to cash in on the popularity of SMS. However, for the moment, any text message sent by a Reliance phone user can only be received by another Reliance user as GSM operators do not recognise this as a legal service. Even Tata Teleservices, another WLL operator, is awaiting clarity on this issue.
When it comes to data services, there is not much difference between GSM cellular operators and Reliance in terms of offerings.
Subscribers on either network will be able to send and receive e-mail, surf the Net, watch video clippings, send multimedia messages, and download games and ringtones.
The difference here is that while Reliance offers these services to all its subscribers, cellular operators offer such services only to those subscribers who have taken a General Packet Radio System (GPRS) connection - which requires a GPRS-enabled handset. The difference is also in the way the services are priced.
While Reliance is charging a regular talk-time rate of 40 paise a minute and a monthly fee of Rs 100 (under the club membership head), cellular subscribers have to pay a monthly fee ranging from Rs 250 to Rs 600, depending on the offerings, in addition to specified tariffs for each service.
For sending a multimedia message (MMS), cell users pay Rs 3 per MMS. For making voice calls, Reliance is charging 40 paise a minute. The finer print here is that this tariff is applicable only for calls made to another Reliance WLL subscriber.
Reliance is also offering STD calls at 40 paise a minute, but this too applies only to Reliance-to-Reliance calls.
If, for instance, you wish to call up a BSNL subscriber, you pay the standard Rs 4.80 per minute. The proposition looks strong only when you consider that Reliance is hoping to get one crore subscribers. But that may be some time away.
Initially at least, the WLL subscribers will end up making most of their calls outside the Reliance network and for this the user will have to pay an additional access charge, which ranges from 30 paise to 50 paise a minute, as specified by the Trai.
Answered by Madhurima
at
6:30 PM on September 17, 2008