BSNL switches focus to CDMA mobile

With its GSM cellular project stuck in controversy, Bharat Sanchar Nigam Ltd is pushing its CDMA-based mobile services. It has launched a pre-paid SIM-card based service on the CDMA platform for Rs 200 a month.

Over 80% of BSNL's cellular user base is on the pre-paid platform. However with the company running out of capacity on its GSM network, BSNL is hoping to get a significant part of the new subscribers on its CDMA platform. The tariff plans for the CDMA pre-paid card is similar to BSNL's GSM tariff schemes.

The capacity crunch in the GSM segment has resulted in BSNL losing significant market share over the last two months with just about 3 lakh new wireless subscribers being added every month compared to a million new users earlier. BSNL has about 27 million GSM subscribers and 3.5 million CDMA users. Since the company has so far been focusing on the GSM space, it has some unused capacity on its CDMA network. BSNL had ordered a network for 2 million CDMA subscribers in 2006 while the last GSM equipment order was done in 2005. According to industry sources, BSNL is finalising plans to issue a fresh tender for procuring CDMA equipment.

BSNL has also decided to launch data services on CDMA 2000 IX which will provide Internet surfing at 44 kbps. The company is also deploying EVDO technology, which is a third generation wireless platform. Until now, BSNL has been primarily using CDMA technology to connect last mile in rural and remote areas through wireless in local loop platform. According to sources the company may now expand the service to make it a full-fledged mobile service as it does not cost much to upgrade the network.