Cellular operators plan to deploy GSM (global system for mobile communications, the digital standard adopted by India)-based, fixed wireless telephone systems in the country. The phones are expected to be installed in public call offices and rural areas next year.
Trials are already on in Delhi and some of the South non-metro circles, sources said. The cellular operators foray into fixed wireless services is designed to improve their average per subscriber revenues. The department of telecommunications (DoT) levies a monthly rental of Rs 1,000 for fixed wireless systems like the one in Delhi.
Cellular operators in the metros have been recording poor monthly usage times and average billings have been low at Rs 1,300-1,400 a month. In the non-metro circles, the usage characteristics of cellphone subscribers has been worse. Some of the circles have as less as Rs 500-600 per subscriber (monthly) revenues. The average is between Rs 700 and Rs 750, one cellular industry source said.
The move into fixed wireless services will allow us to raise about Rs 1,000 in rental charges alone an assured revenue stream. This will raise average monthly subscriber revenues, the source said. He denied that the introduction of the fixed wireless service would run into regulatory problems.
DoT is running trials on fixed wireless systems, which offer limited mobility. In fact, in Delhi the CDMA (code division multiple access, another wireless digital standard) system is just like a cellular service. It is in direct competition with cellular operators. Then, why shouldnt we offer fixed wireless services? he countered.
In the Capital, DoT is running an experimental CDMA-based system supplied by Qualcomm, the San Diego (US) telecom equipment major. It charges Rs 25,000 deposit for the handset, Rs 1,000 monthly rental and Rs 1.40 per three-minute call. The fixed wireless terminal (akin to a normal telephone sans the wires) is priced at Rs 380 per month and Rs 1.40 per three-minute call.
The department is also conducting trials of other fixed wireless systems in Vijayawada (AP), Bangalore and Chennai. In Vijayawada, DoT is using a 1,000-line CT-2 (Cordless Telephony-2)-based system from Dassault of France. In Bangalore, a 30-subscriber digital enhanced cordless telephony system of Ericsson is under test, while an indigenously developed (by IIT, Chennai and some other companies) corDECT system is being tested in Chennai.
Private basic telecom operators also plan to introduce fixed wireless based telecom solutions in the country. Bharti Telenet and Tata Teleservices, the licensees in Madhya Pradesh and Andhra Pradesh, plan to introduce CDMA-based systems, while Hughes Ispat, the Maharashtra licensee, is deploying an E-TDMA (enhanced time division multiple access) wireless system.
