Sunday, September 14, 2008

Why CDMA operator tariffs cheaper?

Since the presence of both the CDMA operator Flexi, Fren and Esia stage in the mobile world in Indonesia, there was a war tariff (price war) between operators, GSM-based operator, did not want to lose banting price as well.

Of course, the benefit is the consumer. But why the CDMA operators to provide a very cheap price.

I remember that time at the end of 2002, investment to build a service infrastructure for the GSM operator persubscriber its required cost approximately 600 USD. Compare that time to CDMA-based infrastructure that is only 150 USD. Moreover the cost of the use of the frequency imposed by the Indonesian government for a frequency fixed wireless access, much cheaper.

Moreover, at this time, CDMA infrastructure investment is much cheaper, made to China, such as ZTE and Huawei, only around 8 USD per Subscriber.







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