Cellphone carrier Citycell wants transform itself as a GSM operator early 2013.

Cellphone carrier Citycell is set to transform itself as a GSM operator early 2013 after two-decades of American technology failed to reverse the struggling firm's fortune, a top official has said.

Mehboob Chowdhury, the company's chief executive officer (CEO), said it will take almost six months to switch over from CDM to GSM technology, pending key approval from the telecom regulator.

The Bangladesh Telecommunication Regulatory Commission (BTRC) said it would not give its stamp of approval for the technology change unless it pays the 2g licence renewal charges.

Citycell, majority controlled by Singapore's SingTel, has the lowest market share in the country with just 1.699 million users. Bangladesh's six mobile operators had a user base of 93 million till June 2012.

The operator's market share has seen a path of decline over the years as it has lost out to its rivals, despite offering lowest call rate. Its marketing of unchangeable handsets and SIM cards has made it unattractive to customers, forcing them to switch over to GSM operators.

But Mr Chowdhury would not say whether the adoption of new technology would help regain its lost glory as the country's oldest wireless carrier.

Mr Chowdhury said Saturday his company is planning to invest in erecting more Base Transceiver Station (BTS). People familiar with the situation said it would need to pump Tk 16 billion for the new technology.

Officials at the Bangladesh Telecommunication Regulatory Commission (BTRC) said the commission has already taken a decision to allow the operator to move to the GSM technology.

BTRC chairman Zia Ahmed said Citycell's approval would depend on the deposits of its second installment for 2G licence renewal, the payment of which must be made by August 31.

At present, all operators except Citycell are giving mobile phone service by using GSM technology.

CDMA (code division multiple access) is a US technology that does not let the subscribers choose handsets, while the European technology GSM (global system for mobile communications) provides clients flexibility.

The Citycell boss said that his customers will have open both option, for choosing RIM or SIM card.

At present, Citycell has 860 BTS, although other mobile phone companies have more than 3,000 stations.

The oldest operator of the country has 10 MHz spectrum in the 800 MHz CDMA band, while other GSM based operators are using spectrum of 900 and 1800 band.

Citycell is the first mobile operator in Bangladesh and launched operations with the name of Bangladesh Telecom Ltd. It got licence in July 1989.

Citycell is currently owned by Singtel of Singapore with a 45 per cent stake, local Pacific Group with 45 per cent, and Far East Telecom, a Hong Kong-based Japanese company, controls the rest 10 per cent.

Source: http://www.thefinancialexpress-bd.com/more.php?news_id=140124&img=1&date=2012-08-13