With the government unifying cellular and basic licences, Bharat Sanchar Nigam Ltd is all set to upgrade its code division multiple access-based limited mobility network to offer 3G (third generation) services.

BSNL, which is the only company to get nationwide unified licence at no additional cost, is planning an aggressive rollout of its CDMA network in order to tap the mobile market.

"We would definitely migrate our limited mobility services to fully mobile services as it does not involve any additional costs. There are also some inherent advantages in the licensing of CDMA-based mobility. For instance, in CDMA we can offer full-fledged 3G voice and data applications. However, no one is sure about the government's policy in migrating GSM-based (global system for mobiles) cellular licence to 3G," senior BSNL officials said.

This, however, does not mean that BSNL's GSM-based cellular business will be abandoned.

"We are planning to offer different tariff packages on GSM and CDMA. We may also focus on data services on CDMA while offering voice on GSM. The customer will get more choice at the end of the day," they said.

Until now, BSNL was using CDMA-based wireless-in-local-loop (WLL) services only at the last mile in rural areas, where it was finding it tough to lay cables. It was also offering limited mobility services in a few select towns. However, it has been able to garner only 600,000 limited mobility subscribers as against 4 million for its cellular services.

"As we are a government-owned organisation, we have to strictly adhere to the regulations and licencing conditions. CDMA-based WLL limited mobility was not proving to be an attractive proposition in the face of full-fledged mobile services being offered by cellular operators. But now, we will be able to focus more on the CDMA business also. We already have the network in place, it just needs to be ramped up," the officials said.

BSNL is also planning a review of its tariffs for telecom services. The company is the largest beneficiary of the government's decision to impose the access deficit charge. The company will get around Rs 5,000 crore (Rs 50 billion) from the move.

"Our access deficit will come down significantly. While the existing tariffs are already at rock bottom we are examining the possibility of passing the benefits of the ADC to our customers. A final decision will be taken on all these matters in our upcoming board meeting," officials said.

BSNL's future plans

• Bharat Sanchar Nigam Ltd to migrate to an unified licence regime.
• BSNL is the only operator in the country which can convert its nationwide basic licence to a full mobility one for no additional cost.
• BSNL will offer mobility services based on both the global system for mobiles and code division multiple access technologies; but focus more on CDMA.
• BSNL will also review tariffs in the wake of Rs 5,000 crore benefit that will accrue to it from the access deficit charges.
• BSNL is drawing out a detailed plan, which will be discussed at the next board meeting.