Competition CDMA and GSM technology
Society began to feel the benefits of competition in the telecommunications sector and competition in technology and business competition between operators provide a profitable alternative. With the entry of technology-based TelkomFlexi CDMA (code division multiple access), then the public can now enjoy mobile phone services with PSTN fixed phone rates. So cell phones are not luxuries anymore.
IN dealing with this competition, the role and regulatory consistency is tested. That is how the policy and regulatory policy for the telecommunications sector, the public interests above the interests of business players.
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 phones in a hundred people. Of course, this number would be smaller for the rural areas or remote areas that can only reach 0.01 percent. Required technological breakthroughs and regulations to boost Indonesia’s teledensity rate is far behind compared to countries of our neighbors.
In Indonesia, the liberalization of mobile business started in 1995, when the government began to open opportunities to the private sector to do business by cell phone full competition. Can be noted, how the technology GSM (global system for mobile) to come and replace first-generation cellular technology that has previously entered into Indonesia as NMT (Nordic Mobile Telephone) and AMPS (advanced mobile phone system)
GSM technology is superior, higher network capacity, because the efficiency of frequency spectrum. Now, within a period of nearly a decade, GSM technology has been dominated market with the number of subscribers more than the number of fixed telephone subscribers. This trend will continue because in addition to its features more interesting, is still a cell phone prestige, especially for the people of Indonesia.
However, until now cell phones are still a luxury, not all levels of society can enjoy. The price is still very high compared to fixed line PSTN (public switched telephone network), both for local and long distance communications (long distance connections), there is reached USD 4500 per minute flat rate for long distance communications.
However, no matter what the tariffs offered by GSM cellular operators, because there is no other choice, so be it, be taken as well. Especially because PSTN phone can not be expected. Thus, the introduction of CDMA technology promises an economical solution to meet the obligations of the government in accelerating the addition of PSTN. Moreover, CDMA comes with 3G cellular technology, which offers features that are more sophisticated than the GSM technology. These advantages as well able to meet the lifestyle needs of modern society.
Why CDMA can be cheaper?
One time a student in the elevator suddenly asked me that question and I just berkometar, lest GSM overpriced. CDMA comes at a price of 200 U.S. dollars per SST (telephone unit), much cheaper than other access technologies for this in that PT Telkom Indonesia dare give cheaper rates. In fact, CDMA is more advanced and superior to GSM.
If so, need to be questioned again how the actual GSM cellular business climate during this includes players who played behind all that. Starting from vendors, operators, and regulators, who are most disadvantaged, though certainly not the public as consumers.
Moreover, if the note scheme of cooperation between the vendor with the operators in the pattern of procurement or purchase of technology. Pain again, is there any significant transfer of technology for our country? For nearly a decade, technology vendors in the GSM network and do business in Indonesia, in fact we only made as buyers and users of technology alone.
Now with the entry of CDMA technology from the other camp with a new business if it was from America, Japan, Korea, or China, the business climate is expected to be more open. Need to be seen whether there is good faith that the new players to enhance the empowerment of our human resources.
Of course the government and the operators must have a strong negotiating power, do not let them come up with a series of requests and requirements to facilitate their business, while we do not know what to ask for their country. Although we do not have a competitive advantage in this technology, but a promising market potential, can be used as bargaining power, for example, to fight for a real transfer of technology. Another thing that needs to be seen is not to place reliance on one or two vendors such as our previous experience with Siemens.
From the aspect of technology, either GSM or CDMA is a digital cellular technology standard, only the difference between GSM developed by European countries, while CDMA from the American and Japanese sides. But it should be noted that GSM and CDMA technology comes from a different point so that the development of generation 2.5 G and 3G networks continue to the next will be different as can be seen in the scheme.
Therefore, we must carefully choose the technology. When we choose CDMA, it should follow the path further up-grade CDMA continues. Keep in mind, up-grade network technologies in a single path will be easier and cheaper than migrating to other technologies.
Network performance is the next criteria that must be considered in technology selection. Performance is highly dependent cellular frequency spectrum efficiency and sensitivity to interference because the frequency spectrum is a resource that is very limited.
To improve the efficiency of frequency spectrum, so do the frequency reuse techniques re-used, re-use the same frequency in another cell at a certain distance so that no interference occurs. CDMA technology has a network capacity higher than the GSM technology and the same frequency can be used in any adjacent cell or neighboring ones.
CDMA technology is designed not sensitive to interference. In addition, a number of subscribers in a single cell can access the tape at the same frequency spectrum as the coding technique that can not be done on GSM technology.
Limited Mobility
Mobility is a major advantage compared to cellular phone technology remains. Every customer can access the network to communicate from anywhere, and here lies the difference with a fixed telephone.
The concept of cellular technology design ensures the mobility of each customer to communicate whenever and wherever he was. So from the aspect of technology, there is no limit even mobiltas customers roaming (roaming) can be done internationally.
If done limitation, especially if the limited use of the technology is only in one cell, the customer could only communicate or use the phone in the coverage area of BTS (base transceiver stations) in which he subscribed.
To Jakarta would highly ineffective and inefficient because such customers who have a home in East Jakarta, working in Central Jakarta, or shopping to Glodok, the phone can not be used. In addition, these restrictions can be used to add the cost operators roaming between cells that would be detrimental, difficult, or fool the public. Do not let the business because of competition and public operators sacrificed. If the restriction remains to be done, of course need to be considered a reasonable limit. For example, limits the scope include Jabotabek (Jakarta, Bogor, Tangerang, and Bekasi).
Genesis is not much different from what is faced by India around the year 2000 when the GSM operators worried that their business is threatened when CDMA entry. The government gave permission CDMA cellular technology-WLL operated to accelerate their PSTN infrastructure, to achieve 7 percent teledensity target by 2005. Until now, the Government of India remained consistently maintain CDMA technology, the mobility remains limited, but large enough coverage area of approximately one province.
Facing an increasingly competitive business cycles and fierce competition and a faster technology, in determining the policies and policy, regulators should look at from all points of view with a comprehensive study, not partial. And more importantly, must be able to anticipate any changes that may occur in order not to miss on.
With the convergence of telecommunications with information technology, licensing policy should no longer depend on the technology and services. Each operator is free to choose the most economical technology and suitable to enhance their competitiveness, in order to offer services to people with low tariffs. Regulators should really independent, impartial to the technology or any other vendor.
Furthermore, the liberalization of this sector requires the regulator to maintain continuity of service to the community, not to occur the cherry picking is possible by new players. When they are caught, they just left without a moral responsibility to the community.
These cases usually occur in developing countries where the laws and regulations are still very weak, as has happened in India so that the strategic steps need to be prepared either by the regulator and operators. For example to anticipate competition, GSM operators should start thinking about alternative technology solutions are up-grade or migration.
Therefore, the role of government and regulators are still very necessary to maintain public interest, especially a country in transition from monopoly to competition. For our country, which until now only a purchaser and user of such technology, would be smart to choose the technology most economical and suitable to the needs and economic ability of the community.
Do not get fixated on a technology or in one or two vendors only. We must be mobile for free, not limited mobility.
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