Now, small players want GSM spectrum

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New Delhi, July 14: After Reliance Communications Ltd, the smaller CDMA-based telecom operators have also started applying for GSM spectrum.

Punjab-based HFCL Infotel Ltd has sent an application to the department of telecommunications (DoT), while Rajasthan-based Shyam Telelink Ltd is planning to do so shortly.

Both the companies have a unified access service licence (UASL) and are eligible for providing services of technology of their choice.

According to an HFCL official, the company plans to offer its fixed wireless services (FWP) on the CDMA technology but for mobile services it intends to migrate from CDMA to GSM. The company said that in mobile the infrastructure cost in GSM-based technology was lower than CDMA.

Also, since there is no national roaming pact among CDMA mobile operators, single circle operators, like HFCL, are not able to provide roaming to their subscribers, which is a big handicap. Shifting to GSM would solve the problem, he said.

HFCL and Shyam provide CDMA-based wireline, fixed wireless and mobile services in Punjab and Rajasthan, respectively. HFCL's total subscriber base at the end of May stood at 327,371, with mobile contributing 62,361. Similarly, Shyam's total base is at 204,699, with mobile contributing 27,627.

Industry observers see the move as a symbolic setback for the CDMA technology as well as for its global patent holder Qualcomm Inc. As the biggest CDMA operator in India, Reliance is already engaged in face off with Qualcomm over royalty rates and has expressed a desire to the DoT to switch over to GSM.