Cdma Subscriber Base Up

The CDMA Development Group (CDG, a grouping some 100 telecom vendors and operators) announced here yesterday that CDMA (code division multiple access) -based systems account for more than 12 million subscribers the world over.

This marks a 65 per cent growth over the end-December subscriber-base of 7.25 million, CDG said. "This puts us on track for the 18 million subscriber target we have set for end of this year, said Perry LaForge, executive director of CDG.

The total number of CDMA subscribers stood at 12.13 million as of June 15. Of this, some 8.75 million were located in Asia, primarily, South Korea, Singapore and Hong Kong. North America is ranked next with about 3.23 million subscribers, with the nascent Central and South American markets reporting some 130,000 users.

Almost 95 per cent of the subscriber base comprises cellular subscribers, with the remaining 5 per cent being accounted by fixed wireless (or wireless in local loop, WLL) subscribers. However, LaForge, the prime mover behind the third CDMA Congress being held here, felt that "real" growth of CDMA-based telecom systems will come from WLL markets.

A significant increase in subscriber growth is expected in the second half of 1998 from Asia, with Japan beginning deployment of CDMA cellular services.

The continuing build-out of CDMA networks in Central and South America is also expected to drive subscriber growth.

The growth in CDMA-based WLL subscribers in India is not expected to contribute significantly to global numbers until the end of 1999. Three basic telecom operators have finalised deals with CDMA-based equipment vendors, while the fourth is expected to do so soon.

Bharti Telenet in Madhya Pradesh is already offering WLL services in Madhya Pradesh, while Tata Teleservices in Andhra Pradesh is expected to go on-line by August 15. Qualcomm is reported to have concluded a deal with Essar Commvision for Punjab and Reliance Telecom is expected to do so with vendors soon. Cost-effectiveness and shorter deployment times while setting up and activating networks are the two main factors driving companies to choose CDMA-based WiLL networks.

WiLL systems, vendors claim, cost less when compared to the enormous costs like digging trenches and "right of way" municipality fees involved in fixed-line networks.

Last year in June, CDG had set a target of 4.5-5 million subscribers (up from 2.5 million now) operating on CDMA-based systems by end-1997. CDMA, vendors claim, allows a cost advantage between 40-50 per cent compared to other wireless systems like GSM (global system for mobile communications, a European standard mandated for exclusive use by Indian cellular operators).