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From the News Desk
Thursday, 28. September 2006
Telecom N.Z. May Follow Reliance in Move to GSM
Telecom N.Z has to dish out USD 264 million to switch mobile phone technology because of dwindling global support for its system. The technology used by the company was Code-Division Multiple Access (CDMA), a system that is seeing tough days ahead with market share dwindling by the minute. GSM technology, used by rival Vodafone Group Plc, has 82 percent, attracting more investment from handphone makers.
"The risks are moving a little bit against us,'' said Telecom Chief Financial Officer Marko Bogoievski. The company isn't yet at a stage where it would choose to dump its existing technology, he said in an interview.
Telecom would follow carriers such as India's Reliance Communications and Brazil's Vivo Participacoes SA in moving to GSM. Nokia Oyj, the world's largest cell- phone maker, is reducing investment in CDMA because the technology is losing momentum in newer markets.
Mumbai-based Reliance Communications, India's largest CDMA carrier, is seeking approval to start GSM-based services in New Delhi and Mumbai, India's two biggest cities. Reliance may drop its CDMA services in favour of GSM, officials said.
"The risks are moving a little bit against us,'' said Telecom Chief Financial Officer Marko Bogoievski. The company isn't yet at a stage where it would choose to dump its existing technology, he said in an interview.
Telecom would follow carriers such as India's Reliance Communications and Brazil's Vivo Participacoes SA in moving to GSM. Nokia Oyj, the world's largest cell- phone maker, is reducing investment in CDMA because the technology is losing momentum in newer markets.
Mumbai-based Reliance Communications, India's largest CDMA carrier, is seeking approval to start GSM-based services in New Delhi and Mumbai, India's two biggest cities. Reliance may drop its CDMA services in favour of GSM, officials said.
