Citycell goes GSM in June

Bangladesh's oldest wireless carrier has decided to switch from CDMA technology to GSM by June next year to revive its flagging fortunes.

Faced with a declining customer base, it will offer subscribers GSM SIM-enabled handsets.

The carrier's market share has shrunk over the years, despite offering lowest call rate . It has lost out to rivals as it finds it difficult to sell fixed handsets and SIM cards to customers.

However, these plans for changes are subject to approval from the telecom regulator Bangladesh Telecommunications Regulatory Commission (BTRC).

US technology CDMA (code division multiple access) does not allow subscribers to choose handsets or devices which the more polar European technology GSM (global system for mobile communications) does.

Of the country's six mobile-phone operators, only Citycell, majority bought by Singapore's SingTel, uses CDMA technology.

Subscribers will finally be using mobile phone handsets of their choice once Citycell transforms itself as a GSM operator and will have open both options of using RIM or SIM card.

The company's Chief Executive Officer (CEO) Mehboob Chowdhury told bdnews24.com: "Talks with the telecom BTRC to introduce the GSM technology are underway. We're hopeful of launching the service by next June."

According to the BTRC, Citycell's total number of subscribers was 1.7 million as of September this year.

Asked whether all these 1.7 million subscribers would have the CDMA-based handsets replaced with GSM technology-enabled devices, he said: "Citycell has plans to provide new handsets to those willing to go for GSM technology."

He hoped that the number of Citycell subscribers would increase after the introduction of the GSM technology.

Chowdhury had earlier said his company would invest in erecting more Base Transceiver Station (BTS). Media reports had it that it would need to pump Tk 16 billion or $200 million initially for the new technology.

Citycell has 860 BTS, much less than the other operators that have more than 3,000 stations. The operator has 860 BTS and it plans to increase the number to 2500. It operates with 10MHz spectrum in the 800MHz CDMA band while the GSM-based rivals use spectrum of 900 and 1800 band.

Citycell's plea for the technology shift came in August when the operator sought from the BTRC a no-objection certificate to introduce the GSM.

The then BTRC Chairman Zia Ahmed at a function on 2G licence renewal on Aug 7 said that Citycell may be given approval anytime for the technology shift.

Citycell is the country's first mobile communications company which started its operation in 1993.

Singtel has 45 percent stakes, local Pacific Bangladesh Telecom owns 45 percent, and Far East Telecom, a Japanese firm based in Hong Kong, controls 10 percent.