Swot Analysis of Reliance Communication

Topics: GSM, Mobile phone, Mobile phone companies of India Pages: 8 (1211 words) Published: June 29, 2010
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CDMA vs GSM in India

Comments Posted on Nov 23, 2009 Posted by Kiran

When we talk about cellular services, there are two main cellular data transmission technologies out there: Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM). GSM is the most popular technology worldwide. Although CDMA has a lower number of users compared to GSM, it is seriously popular in countries like China and India.

Though both the technologies do a similar job, there is major difference between them in terms of how they work. In CDMA technology both data and voice are separated using codes and then transmitted using a wide frequency range, leaving more space for data transfer. Because of this behaviour, CDMA is the preferred technology for 3G services. GSM is not a new technology. It was invented before CDMA but it has a reputation as the latest mobile technology. It’s often claimed that it’s a better technology because it uses a SIM chip, allowing users to switch handsets and operators more easily. Other advantages of GSM over CDMA are roaming readiness and fraud prevention. GSM is used by over 3 billion people across more than 212 countries and by comparison, there are over 502 million CDMA users worldwide.

According to a recent report by the CDMA Development Group (CDG), India has a CDMA user base of over 100 million which makes it world’s second-largest CDMA market in the world. US-based Verizon Wireless is the number one CDMA operator in the world and China based China Telecom ranks third. In India, CDMA mobile services were launched in December 2002 and in these seven years the Indian cellular market has seen some major competition between it and GSM technology.  It took several CDMA operators, device makers and technology facilitators to make India a well known CDMA enabled country. Tata Teleservices and Reliance Communications were the pioneer telcos to launch CDMA mobile services in India. CDMA services are currently available throughout 20 circles of India.


Reliance Communications however is the largest operator of a CDMA platform in India's wireless sector with 56% CDMA market share. Tata Teleservices on the other hand have 37% of the market share. State owned Telco, BSNL have share of 6% in the CDMA market and newly launched MTS – owned by a foreign player, Sistema Shyam TeleServices Limited (SSTL), holds just 1%.


SSTL still has high hopes for the technology to capture more market share. Mr. Vsevolod Rozanov, President and CEO of SSTL said, “MTS India is currently launching CDMA2000 services very aggressively across different telecom circles of the country. As a consortium of international CDMAservice providers and manufacturers, CDG provides the right platform for MTS India to connect with the global CDMA community." – TopNews.


Although India has a growing mobile phone industry it will be hard for SSTL to grab new subscribers since they are now competing with mature leaders like Tata Teleservices and Reliance Telecommunications.

GSM magnetism...
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