GSM Vs CDMA GSM Vs CDMA debate is one of the oldest debate in the mobile telephony world. Let me share some facts and try to provide some answers.
1. CDMA is deployed mainly in US, Japan (now migrated to 3G), Korea and India where as GSM is deployed around the world including in US, India.
2. Scale of GSM is very high. In terms of demand for handsets, GSM/GPRS/EDGE handset demand is ~60% of total demand where as CDMA is ~20-22%.
3.Considering ~1.2B handsets sold this year, GSM throws open major volumes to the handset makers, then they would more focus on that segment to develop new handset models and features. more over due to scale advantage, they are cheaper as well compared to CDMA.
4. GSM handsets are sold more in Retail and CDMA handsets are generally locked to the network. this is also a major hurdle for faster replacement cycles as it is difficult for a consumer to just change the handset like that as in GSM.
5. There are more supporters for GSM technology and hence more network providers, operators and countries have deployed it where as CDMA is invented by Qualcomm and licensing is managed by Qualcomm. More over the entire ecosystem would wait for qualcomm to deliver the new features be in network or in handset or in seminconductors for the handset.
hence the whole innovation cycle more controlled and hence a bit slower.
6. CDMA technology is said to offer better voice clarity compared to GSM, but under regular network conditions, it is difficult to prove which one is better as it is affected by network conditions like position of base stations, power, RF tuning, handover logic, number of subscribers in a cell, handset design etc etc But certainly CDMA offer better data rates (~139 KBPS max) compared to GSM+GPRS which offers ~20-56KBPS depending on number of data slots available. EDGE offers 239 KBPS max again depending on number
data slots available. In India most of the operators have configured the network for only Voice slots hence you see minimum data card users in GSM network, where as in CDMA, data slots are separate than voice slot and if unused data slots will not give any revenue to operators, hence CDMA operators focus on data card business.
7. Roaming : this is the main difference between GSM and CDMA. GSM allows global roaming where as CDMA is a closed service in a region. In India, CDMA operators offer limited roaming where ever their networks have been deployed, again selecting a different operator is not possible as handsets have been (generally) network locked.
8. Handsets : generally GSM handset industry is more open (more players, more companies designing, branding and selling handsets as well as companies developing SW and applications) where as CDMA handset industry is more controlled by Qualcomm. hence the GSM handset related information is more openly available and third party ecosystem is also available as a alternative.
9. Sprint has used CDMA technology, but the actual version of network etc may not be same as that of Indian CDMA operators basically because the CDMA networks deployed in India are more advanced than that in US basically because the deployments have come later in the time period.
10. Number Portablility : this is long awaited, but much delayed. There are Regulatory concerns, concerns form operators on un-fair competition as well as revenue protection. But in my opinion number portability would be introduced in a phased manner viz. within an operator and across the circles, within an operator and across technology platform (CDMA to GSM and vice versa or CDMA/GSM to 3G and vice versa). True and Full number portability would be a myth for some time.
11. The average cost of per minute call in a CDMA network is more than a cost of per minute call in a GSM network. hence in a tarrif war, CDMA operator would end up having lesser margin than a GSM operator. More over due to above shared facts, more CDMA operators are trying to switch to GSM, in fact both Reliance and Tata have launched GSM service as well.
In India CDMA share is currently ~ 20-22% of the total handset demand it has been declining and forecasted (by popular industry analysts) to decline further to 15-16% of total demand in next 2 years.
Last edited by StarVegabond : 17th October 2009 at 09:15.
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