• PAGE ONE
• INDEX
• HOME

Basic operators in talks for affordable handsets

G. Rambabu

NEW DELHI, May 27

IN a bid to counter the growing criticism that the high cost-based rentals prescribed by the Telecom Regulatory Authority of India (TRAI) have made limited mobility services unaffordable, the basic operators are desperately trying to source cheaper code division multiple access (CDMA) handsets to drive down costs.

According to industry sources, negotiations are on between the basic operators and companies such as Hyundai, Motorola and Samsung to introduce basic handsets at a low cost of between Rs 3,000 and Rs 5,000. At present, CDMA handsets are available in the market at over Rs 8,000.

``The operators are also working out an agreement with Qualcomm for supply of cheaper chips used in the manufacture of CDMA handsets. Once the cost of the chips come down, the handsets will automatically be available at much lower prices,'' they said.

Cellphone manufacturers have promised that the delivery of the cheaper, stripped-down CDMA handsets should be available in the market in the next couple of months. Once the handset costs are driven down, it is expected that limited mobility service will automatically become the most affordable and convenient telecom service.

``In any case, even with the existing costs, the limited mobility services work out much cheaper than the GSM-based cellular services. Once the handset costs come down, it will effectively silence all the critics who have been claiming that the common ma n will not be able to afford the limited mobility services,'' they said.

They noted that based on rough estimates, a low-end user of the WLL service would be saving Rs 1,489 per month as compared to the cellular subscriber, a moderate user would save Rs 2,209 per month, and a high-end user Rs 3,649 per month.

At the rate of four calls per day (of three minutes duration each), it would work out to 120 calls per month for a low user. A consumer using the WLL service would pay Rs 144 for outgoing calls, while the cellular costumer would pay Rs 1,008.

Similarly, for an equal number of incoming calls, while the WLL service user would pay no money, the cellular service would charge Rs 576. The total cost of the calls in this case would, therefore, work out to Rs 144 for the WLL user and Rs 1,584 for the cellular user. Taking into account the monthly rentals, it would work out to a saving of Rs 1,489 over the cellular services.

Similarly a moderate user, making 180 calls per month, at the rate of six calls per day would be saving Rs 2,209. At 10 calls per day, the total savings works out to Rs 3,649 per month, they said.

Maybe, limited mobility service will become affordable after all.