GSM and CDMA Technology Competition

COMMUNITY began to feel the benefits of competition in telecoms and technology competition and rivalry
inter-operator business provides a profitable alternative. With the entry based TelkomFlexi
CDMA (code division multiple access), then the public can now enjoy mobile phone services
PSTN fixed phone rates. So cell phones are not luxuries anymore.

IN dealing with this competition, the role and consistency regulators fully tested. That is how policy and
telecommunications sector regulatory policy to give priority to public interests over the interests of the players
business.

The main problem for governments is how to accelerate the addition of telecommunications infrastructure
in Indonesia. Telephone density (teledensity) has been only 3.7 percent, or an average of three phone calls between
hundred inhabitants. Obviously this figure will be even less for the rural areas or remote regions
can only reach 0.01 percent. Required technology breakthroughs and regulations to boost
Indonesia teledensity figures are already far behind compared to our neighboring countries.

In Indonesia, the liberalization of mobile business started in 1995, when the government began to open opportunities to
for private business mobile phone with full competition. Can be noted, how when the GSM technology
(Global system for mobile) come in and replace first-generation cellular technology that has been previously entered
to Indonesia such as NMT (Nordic Mobile Telephone) and AMPS (advanced mobile phone system)

GSM technology is superior, higher network capacity, because the frequency spectrum efficiency. Now, in
period of almost a decade, GSM technology has controlled the market with the number of subscribers more than the amount
fixed telephone subscribers. This trend will continue because in addition to more interesting features, mobile phones are still
represents prestige, especially for the Indonesian people.

However, until now cell phones are still luxury goods, not all levels of society can
enjoy it. The tariffs are still very high compared with fixed line PSTN (public switched telephone
network), both for local and long distance communications (long distance), there is reached USD 4500 per
minute flat rate for long distance communication.

However, no matter what the tariffs offered by GSM mobile operators, because there is no other option, what should make, were taken as well.
Especially because the PSTN phone can not be expected. Thus, the introduction of CDMA technology promises an economical solution
to fulfill the obligation of government to accelerate the addition of the PSTN. Moreover, CDMA comes with
3G cellular technologies, which offer features more sophisticated than the GSM technology. This advantage
both can meet the lifestyle needs of modern society.

Why CDMA can be cheap?

One time a student in the elevator suddenly ask the question and I just berkometar, lest GSM
are overpriced. CDMA comes with a price of 200 dollars per SST (telephone unit), much cheaper
compared with other access technologies in Indonesia so far dared to give Telkom tariffs
cheap. In fact, CDMA is more advanced and superior to GSM.

If so, need to be questioned again how exactly the GSM cellular business climate for this include
the players who played behind all this. Starting from vendors, operators, and regulators, who are the most
benefited, although certainly not as a consumer society.

Especially if you note the cooperation scheme between the vendor with the operators in the procurement or purchasing patterns
technology. Pain again, is there any technology transfer that means a lot to our country? For nearly a decade, vendor-
enter the GSM network technology vendors and doing business in Indonesia, the fact we only used as a purchaser and
simply technology users.

Now with the introduction of CDMA technology from the other camp with a new business if it was from America, Japan,
Korea, or China, is expected to be more open business climate. It should be noted whether there was a new player in good faith
to enhance the empowerment of our human resources.

Of course the government and the operators should have a strong negotiating power, do not let them come
with a series of requests and requirements to facilitate their business, while we did not know what to ask
to their country. Although we do not have a competitive advantage in this technology, but market potential
promising, could be used as bargaining power, for example, to fight for a real technology transfer. Another thing
matters more is not to place reliance on one or two vendors such as we experience
previously with Siemens.

From the aspect of technology, either GSM or CDMA is a digital cellular technology standard, GSM only difference
developed by the countries of Europe, while CDMA from American and Japanese sides. But keep in mind
that the GSM and CDMA technologies derived from different lines so that the development of the generation 2.5 G and 3G
will be different next continues as can be seen in the scheme.

Therefore, we must carefully choose the technology. When we choose CDMA, then it must follow the path
CDMA continues to up-grade. Keep in mind, up-grade network technologies in a single lane will be easier and cheaper
migration compared to other technologies.

Network performance is the next criteria to be considered in technology selection. Performance of cellular networks
depends on the efficiency of frequency spectrum and sensitivity to interference due to spectrum
frequencies are very limited resources.

To improve the efficiency of frequency spectrum, so the frequency reuse technique re-Used,
re-use the same frequencies on another cell at a certain distance so there is no interference.
CDMA technology has a higher network capacity compared to GSM technology and frequency
the same can be used on any neighboring or adjacent cells though.
CDMA technology is designed not sensitive to interference. In addition, the number of subscribers in a single cell can
access at the same frequency spectrum band for using the coding technique can not
performed on the GSM technology.

Limited mobility

Mobility is a major advantage compared to cellular telephone technology and equipment. Each customer can
access networks to communicate from anywhere and here lies the difference with a fixed telephone.
The concept of cellular technology design ensures the mobility of each subscriber to communicate whenever and
wherever he was. So from the aspect of technology, there is no limit mobiltas customer even cruise (roaming)
can be done internationally.

If done restriction, especially if the limited use of the technology in just one cell, the customer can only
to communicate or use the phone within the coverage area of BTS (base transceiver station) where
he subscribed.

To Jakarta certainly very ineffective and inefficient because such customers who have a house in East Jakarta,
working in Central Jakarta, or shopping to Glodok, the phone could not be used. In addition, restrictions
These operators can be used to add antarsel roaming charges which would impair, complicate, or
fooling the public. Do not let the competition of business operators and community sacrificed. If
restrictions still want to do, of course, needs to consider a reasonable limit. For example, limits the scope includes
Greater Jakarta (Jakarta, Bogor, Tangerang, and Bekasi).

This incident is not much different from what is faced by India about the year 2000 when the GSM operators worried
their business is threatened when the CDMA entry. The government gave permission CDMA-WLL mobile technology is operated for
accelerate their PSTN infrastructure, to achieve the target of 7 per cent teledensity in 2005.
Until now, the Government of India remained consistently maintain the CDMA technology, the mobility remains limited,
but large enough coverage area is approximately one province.

Facing the increasingly fierce competition and business cycles as well as the increasingly rapid technological competition, in
determining policies and discretion, regulators should look at from all points of view with a study
A comprehensive, not partial. And more importantly, be able to anticipate all the changes
possible so as not to miss continue.

Given the technological convergence of telecommunications with information technology, licensing policy should no longer
dependent technologies and services. Each operator is free to choose the most economical technology and is suitable for
enhance their competitiveness, in order to offer services to people with low tariffs. Regulators
really need to be independent, impartial to any technology or vendor.

Furthermore, the liberalization of this sector requires the regulator to maintain continuity of service to the community,
do not let that happen cherry picking may be done by new players. When they are caught, they
so just left without a moral responsibility to the public.
Usually these cases occur in developing countries where laws and regulations are still very weak, such as
never happened in India so that the strategic steps need to be prepared both by regulators and operators.
For example, to anticipate the competition, GSM operators should start thinking about alternative technology solutions whether
up-grade or migration.

Therefore, the role of government and regulators are still urgently needed to safeguard the interests of a community
countries, mainly in transition from monopoly to competition. For our country, which until now only be
purchasers and users of these technologies, would be a smart-smart choose the most economical and technological fit
with community needs and economic capabilities.
Do not get fixated on a technology or on just one or two vendors. We must be freely mobile, not
limited mobility.