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Home > Business > Business Headline > Report

What GSM versus CDMA means for you

Thomas K Thomas | January 02, 2003 19:22 IST

How would you like it if you could carry your telephone wherever you go? Well, I already do that with my mobile, you might say. But what if you were offered a mobile phone with tariffs that were closer to those of landlines - or one-fourth the normal cellular tariffs?

At Rs 1.20 for a three-minute call, the code division multiple access (CDMA)-based wireless in local loop 'limited mobility' service will do exactly that.

From the consumers' point of view, the biggest advantage of WLL limited mobility over global system for mobile cellular services is in terms of call charges.

While GSM tariffs are in the range of Rs 1.50-2 per minute, WLL offers services at 40 paise per minute.

The other advantage for a WLL user is that he does not have to pay access charges while dialing into fixed-line telephones even when cellular users pay Rs 1.20 for a three-minute call every time they call a landline number.

The third advantage for a WLL user is that incoming calls are free. On a GSM-based cellular service, consumers pay an average of Rs 1.50 per minute.

This means huge savings as, on an average, 40 per cent of the monthly cellular bill is from incoming calls.

Does this mean the end-of-the-road for GSM? Not quite. While WLL limited mobility services are best suited for cost-conscious users, people who travel a lot and those looking for gizmos and value-added services would do well to stick to GSM phones, at least till there is regulatory clarity on a number of issues.

For instance, one is still unclear whether short messaging services (SMS) are permitted on WLL limited mobility services. One is also not sure whether WLL users will be able to surf the Internet through their phones like GSM users do.

Mind you, these differences are not on account of any technology being superior to the other; they have more to do with regulations.

Your call

For existing GSM cellular users planning to migrate to WLL, the biggest roadblock is the high entry cost.

Most WLL operators charge about Rs 3,000 as security deposit and another Rs 5,000 for the handset.

The entry cost goes even higher when you add the losses due to junking your GSM mobile handset. WLL users are also limited to be a mobility of 25 km radius.

While GSM users can go anywhere in the world and still be connected, roaming for WLL users is a strict no-no.

So if you are staying put in a place such as Delhi, WLL may be a good option but if you are someone shuttling between Mumbai and Pune, GSM is a better option.
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