Financial Times

New WLL technology helps meet growing telecom demand
By Akhry Ameer
The recent issue of frequencies for fixed line phones through Code Division Multiple Access (CDMA) technology is helping meet a growing telecommunications market. Wireless Local Loop (WLL) telecom operators Suntel and Lanka Bell have recorded as much as 1000 new connections daily in the initial weeks of the launch.

The frequencies that had been requested by operators had been pending for almost four years with the Telecommunications Regulatory Commission (TRC) until the recent intervention by the Minister of Telecommunications. The frequencies were issued to the operators on the condition they would develop mandatory rural areas in the south, and areas around Ratnapura and Kandy.

The CDMA technology that is being globally used for access networks between operators and customers is cost-effective and advanced. This allows telecom providers to provide many value added services beyond voice and also rationalize on base-stations. The earlier WLL technology adopted required a base station within 4km of every phone installation which now requires a base station within a 25 km radius. The phone unit is also now compact and has its battery built-in unlike the previous units that came in two pieces.

The third generation technology is also being used by mobile operators. However, in the case of WLL’s the phone units are assigned to a specific base station thus providing limited mobility. This is a mobility feature of the technology which has been restricted by operators.

The new technology has also created a new phenomenon among subscribers who now not only walk-around within their houses with the phone unit, but have begun transporting the unit within the radius of the base station they are assigned to.

This CDMA technology also sets the stage for universal licensing as the next stage of telecommunications in the country. Upon issuing of a universal license, all operators will be able to provide fixed to mobile connections.
Meanwhile operators are happy with the move by the minister as it has not only expanded their target market with lower costs, but are able to meet demand fast. According to Mahinda Ramasundera, Director – Technical and Regulatory Affairs at Suntel, his company was able to create capacity for 250,000 new connections within three months of issuing the frequencies. Suntel hopes to provide for up to one million subscriber capacity by end of this year.

Incumbent fixed wire-line operator Sri Lanka Telecom (SLT) is also eligible for frequencies to provide connections through the CDMA technology. However, the operator is yet to give-up some existing frequencies before taking on the new frequencies.

The new phone units being marketed now not only provide basic voice telephony but also allow users to subscribe for additional services like data, short message service, voicemail, etc that can be instantly activated by the operator. The cost of the new basic connection averages around Rs. 14,000 and is expected to stabilize around Rs. 10,000 in the near future with operators already announcing special promotions.

The almost instant activation by operators indicates a bottleneck that has lasted four years with the TRC in the issuing of frequencies. According to Suntel, the company first made its application four years ago for this technology.

Further, it also indicates the absence of the need for Regional Telecommunication Networks (RTN) that was proposed by the Information Communications Technology Agency (ICTA) which now has been blocked through court action by existing operators.

Industry officials feel there is no necessity for new operators and that existing operators can meet these demands if the subsidy being talked about is offered to existing operators. Some officials feel even subsidies would not really matter if frequency requests can be met as in the turn of events in the recent months.

Office phone by day, home phone by night
The limited mobility feature of the new CDMA technology phones has created a dual use among some subscribers. Though not promoted by operators some subscribers have resorted to carry their phones to office during the day and taking it back for home use in the evenings. The new technology allows a mobility of about a 25km radius for each phone unit centered around its base station.

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