NTC orders BayanTel to use GSM technology

Telecom regulators have ordered the Lopez group's Bayan Telecommunications Inc. (BayanTel) to operate a mobile phone service using the GSM technology, the same platform used by the country's three existing mobile phone firms. BayanTel had wanted to use the CDMA (code division multiple access) for its planned wireless service. GSM (global system for mobile telecommunications) is the most common telephony service used by operators. Its unique feature compared to older analog systems is the short message service (SMS). Its supplementary services are provided on top of teleservices or bearer services, and include features such as international roaming, caller identification, call forwarding, call waiting, multi­party conversations, and barring of outgoing (international) calls, among others. Smart Communications, Globe Telecom, and Digitel all use the GSM technology for their wireless services. CDMA, on the other hand, is a newer technology than GSM. As the signal can be transmitted over greater distances, it may give reception in more remote or rural areas where a GSM phone does not pick up a signal. "What they submitted to us was a technical plan based on CDMA technology. However, we told them that they stand to lose the 1800 frequency bandwidth assigned to them for shifting to a new the technology," said Ronald Solis, a commissioner at the National Telecommunications Commission (NTC). "In other words, we will have to reallocate the frequency to others if their chosen technology is not GSM." NTC director Edgardo Cabarios said in a separate interview that BayanTel is financially sound to establish a GSM network. "They said they can start building the network very soon. They said they have the financial resources," Cabarios said. A cellular site may cost up to P20 million. The NTC said BayanTel had originally submitted a roll-out plan based on a GSM technology but later opted to operate on a CDMA platform, which BayanTel said was consistent with the migration plan from 2G to 3G network. BayanTel is also asking the NTC to reconsider its application to operate 3G. BayanTel had said that it wanted to offer a cellular service that would be limited to a certain service area using its existing assets and resources, particularly the mobile phone frequencies granted by the NTC. But since BayanTel has not installed a single GSM base station, the NTC did not allow the company to shift to a new technology. - GMANews.TV