Why choosing CDMA technology

Why choosing CDMA technology

Mahendra Gautama, Contributor, Jakarta

Why should I choose CDMA-based telecommunications and
cellphones? What are CDMA's features that may be far more
superior than my current cellphone with the latest GSM
technology?

Among a number of questions, these two are frequently asked by
potential customers of the telecommunications technology recently
introduced in this country, the Code Division Multiple Access
(CDMA).

This telecommunications technology, discovered by Qualcomm, is
in fact not very new here. In the mid 1990s, one of the country's
major providers, PT Komselindo, started to use the earlier
version, called CDMAOne or more frequently referred to as CDMA IS
95A and CDMA IS 95B. However, due to various issues, the quality
of voice and speed of data delivery, it only managed to interest
a small portion of the Indonesian market compared with its GSM
(Global System for Mobile Communications) counterpart.

Now, the latest versions of CDMA technology are available in
the country. Three brands are competing for the growing market of
CDMA-based cellphone users: TelkomFlexi, Esia and Mobile Fren.
CDMA Forum reported in its December 2003 issue of two versatile
variants: CDMA2000-1X and CDMA2000-1X EV-DO. The first is the
standard version already used by 46 operators worldwide, while
the second one is only used by four operators, including the
state-owned PT Telkom. TelkomFlexi is the company's brand.

Technically, CDMA2000-1X contains two superior features. The
first one is increased network capacity and high-speed data
transfer capacity that exceed those of both GSM and GPRS (General
Packet Radio Services). For operators using this CDMA technology,
these features enable them to provide cost-effective, faster and
more convenient technology for their customers. Hence, upgrading
their network to third generation (3G) telecommunications is less
problematic in comparison with operators relying on the GSM
technology.

The second feature makes it possible for a larger output. It
can transfer data up to 153 kilobytes per second (kbps) at a
mobile throughput of between 60 kbps and 80 kbps. GPRS,
meanwhile, is only able to cope with up to 115 kbps with a
maximum mobile throughput of between 30 kbps and 40 kbps.

These features mean a wider range of benefits for users. Apart
from being able to browse the Internet faster, they also enjoy
more variety of telecommunications services, such as the broader
band for bulkier e-mails, online video games and streaming video
as well as traffic monitoring. The CDMA2000-1X ensures a smoother
operation and delivery of all the features.

Its transmitting strength is another plus point. Compared to
the 20-30 kilohertz of the AMPS and GSM systems, it comes with a
heftier 1.25 megahertz transmitting power. As long as the
operator's transmitting base is working, the possibility of being
not connected is very slim. Even CDMA-based cellphones with a low
battery are still operable due to the powerful transmitter.

In spite of its many strong points, the providers in this
country market the CDMA on another merit. TelkomFlexi and Esia,
for example, offer economical rates that are similar to those of
fixed telephones. CDMA-based mobile phones are seen more as
pseudo-cellulars, that are workable only within a city with much
lower rates. This has been made possible as the CDMA operators do
not have to pay for the use of frequency or airtime. What is
enjoyed by the consumers is obviously the lower rates for local
calls. During busy hours, between 9 a.m. and 3 p.m., it is Rp 100
(1.2 US cents) and even much cheaper, Rp 65, outside the busy
hours.

The marketing position chosen by the country's CDMA operators,
based on the lower rates, similar to those of fixed telephones
here, is not without weakness. For one thing, compared with the
services provided by operators in other countries, its mobility
here is comparatively limited. Presently, in Indonesia CDMA-based
cellphones often cause frustration to the users, because even in
certain areas of Greater Jakarta the signal is not available,
while their GSM-based cellphones are much more convenient not
only for local use, but nationwide and even international
connections are at their fingertips.

CDMA's long-distance calls are much more expensive than GSM's,
because the rates are based on those imposed for fixed telephones
here. With their business acumen, GSM operators, meanwhile, have
also cut down rates and expanded their zoning system, thereby
reducing roaming costs. At present, it is a bit confusing. Should
one have both, the CDMA- and GSM-based cellphones and use each
for its most economical purpose?

The handsets available on the market here is another no-no for
a number of people. CDMA handsets are considered less fashionable
and user friendly. The variety is also limited, while some of the
brands are unfamiliar. Probably, the late entry of CDMA
technology in this country is the major reason for the related
companies to be less aggressive or innovative. The situation here
is a far cry from that in Japan, South Korea and China, where
handsets are seen as functional devices. In contrast, cellphone
users in Indonesia regard them as gadgets that are fashionable
items, which reflect their lifestyle or status.

However, with major corporations, like Nokia, Sony Ericsson
Motorola, NEC and Panasonic among others, entering the CDMA
cellphone market, tangible and intangible improvements are likely
to occur.

The day may not be far off when Indonesian consumers can
enjoy, to the fullest, the wide-ranging superior features of
CDMA. Being economical will certainly be seen as only one among
its long list of benefits. In the meantime, one often wonders
whether it is cost-effective to carry both the CDMA- and GSM-
based cellphones like a number of people are now doing. In a way,
it may seem contradictory.