GSM and CDMA Competition in Indonesia
As written in the previous posting, currently
Firstly, I want to explore the frequency bandwidth of each operator. You can find out the detail in the table below.
Frequency Band of Each Operators
| Operator | Technology | Bandwidth (MHz) |
| Indosat | GSM+DCS | 30 |
| Indosat | 3G | 5 |
| Telkomsel | GSM+DCS | 30 |
| Telkomsel | 3G | 5 |
| XL | GSM+DCS | 15 |
| XL | 3G | 5 |
| HCPT | GSM/DCS | 10 |
| HCPT | 3G | 5 |
| NTS / Axis | GSM/DCS | 10 |
| NTS / Axis | 3G | 5 |
| Telkom Flexi | CDMA | 5 |
| Indosat StarOne | CDMA | 5 |
| Bakrie Esia | CDMA | 5 |
| Mobile-8 Fren | CDMA | 5 |
| Smart Telecom | CDMA (PCS) | 6,875 |
| Sampoerna Ceria | CDMA 450 | 7,745 |
If we inspect the data in detail we will find out that GSM operator has wider frequency band than CDMA operator. Every GSM operator has at least 10 MHz, while CDMA operator on the other hand has less than 8 MHz in its maximum frequency band. Some GSM operators have 30 MHz frequency band, while most CDMA operators only have 5MHz.
What is the impact of this bandwidth?
GSM Operators which also have 3G licenses have many freedom in designing their network. With such wide spectrum they can optimize their network so that their investment can be lower. CDMA operators on the other hand shall develop their network very hard in order to have good coverage and capacity. Hence, they need to build many BTSs, and thus their investment will be higher than GSM operator. This comparison is applied in order to serve the same region and same numbers of subscribers.
Next, let’s look at the number of subscribers of each technology.
“Bisnis Indonesia” Daily on April 16, 2008 wrote the number of active subscribers for each operator. It was clearly showed that the number of subscriber of each CDMA operator were still below 10 millions, while two biggest GSM operators have more than 50 million subscribers.
Is it a balanced competition? You are the judge.
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1If we inspect the information in treatment we testament find out that GSM cause has wider rate banding than CDMA opportunist. Every GSM operator has at littlest 10 MHz, while CDMA cause on the remaining hand has less than 8 MHz in its extremum cardinal stripe.
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