Due to Penetration of smartphones, reduction of 3G data rates by GSM operators, other CDMA telecom operators including Tata Teleservices, Sistema Shyam Teleservices are losing ground, which is leading the telecom operators to look forward to Wi-Fi enabled dongles and routers.
As per the market analysts, the CDMA operators should work on their marketing strategies to re-gain market share and keep away competition with a new player, Mukesh Ambani led Reliance Jio Infocom which is ready to roll out 4G services.
Gurinder Singh Sandhu, Head of Marketing, Mobility at Tata Teleservices said that major data growth is happening on small screens such as smartphones and tablets, while the dongle business meant for big screens like laptop has been stagnant for the last 12-15 months.
It is believed that CDMA operators will continue to expect demand for dongles from the enterprise segment, while challenges will remain in the consumer space where users prefer devices that are easier to use, for instance 3G smartphones and tablets over laptops connected to the Internet via dongles.
Besides upgrading CDMA networks to counter GSM players, Tata Teleservices and Sistema Shyam Teleservices have launched many Wi-Fi enabled dongles coupled with aggressive data pricing. RCom is overhauling its CDMA network and is working towards making it exclusive for dongles. It has also started introducing Wi-Fi enabled dongles. The company didn't respond to an email seeking comment on the dongles business. For Tata Teleservices, two-thirds of dongles customer acquisition is happening on Wi-Fi ones.
Let’s hope that this strategy will help the telecom operators to bring back the momentum.
