To enable us to decide, let’s investigate the Indian telecom industry from this context. In the process, the readers can themselves conclude as to how the businesses would have performed in case the “regulatory framework” got altered.
CDMA vs GSM
CDMA (Code Division Multiple Access) was introduced in the Indian market in the early 2000. This technology was initially used by the basic services operators to offer limited mobility service by replacing the last mile copper wire with a wireless link, thereby saving greatly on capex and opex. On the other hand, GSM (Global System for Mobile) technology was used by cellular operators to offer full mobility services. Basic services operators paid lower license fees, and also had superior technology with significant capacity (CDMA is much more efficient than GSM) and coverage (CDMA needed lesser BTSs) compared to their GSM counterparts. In-spite of these advantages, CDMA technology could not win the technology battle. Why? Let’s discuss.
