Banks Queue Up For Cdma Phones

Banks and financial institutions in Mumbai are grabbing the code division multiple access (CDMA) handsets offered by Mahanagar Telephone Nigam (MTNL) with both hands.

The top management of the institutions want their junior and middle level managers to become "mobile". "Those who have not been given cellular phones are getting the new device. Now they can be traced even if they are on the move. The services offered by MTNL are cost effective too," institutional sources said. In fact, some institutions are bargaining with MTNL for waiving the deposits on bulk orders.

"The CDMA handsets are ideal for employees who don't travel outside the city. From the cost angle, it virtually amounts to carrying a landline as there is no payment for receiving calls and charges are reasonable for outgoing calls," said sources.

Using CDMA phones will help reduce costs incurred on cellular phones used by managers since limited mobility services are available at Rs 1.20 per three minutes. However, the limited mobility service does not offer roaming services.

"We are trying to reach all major customers in Mumbai to offer our services," a top MTNL official said.

The shift to CDMA phones could affect the bottomlines of cellular players. Cellular companies are increasingly depending on institutions and major corporates who make more calls on the cell phone.

MTNL, which has begun limited mobility services in Mumbai and Delhi under the Garuda brand name, has already attracted around 8,000 subscribers in Mumbai. The company wants to offer wireless in local loop (WLL) services to 30,000 users and another 20,000 subscribers who have no access to fixed line services in the city.

Analysts feel WLL services could eat into MTNL's cellular subscriber-base, which currently stands at around 78,000. But company officials refuted claims of analysts. MTNL plans to position the two services in a unique way.

MTNL's Trump brand of prepaid cellular cards is also receiving good response from users. The prepaid card, which was launched in the city on January 16, two days after its launch in Delhi, has attracted more than 3,200 users, company officials said.