CorDECT Innovating for a Telecom Revolution

Abstract

The case deals with CorDECT, a revolutionary telecommunications (telecom) technology developed in India that won international acclaim. This wireless access network technology was not only cheap, it was also the world’s only telecom technology that could be used for both voice and data transmission simultaneously. The case traces the Indian telecom industry’s evolution over the decades in India and explores the reasons for the low telecom penetration in the country’s rural areas. It then points out how the CorDECT technology came as an answer to this problem and lists its benefits over other access technologies. Thereafter, it highlights the regulatory and competition-related problems faced by the technology’s promoters while commercializing it. This is followed by information about India and various other countries deploying CorDECT, and the benefits they reaped as a result. The case ends with a discussion on the future of CorDECT and the scope for further enhancements to the technology.

"CorDECT is a major innovation in the area of broadband wireless communication. It has the cheapest capital investment and operational cost amongst all the Wireless Local Loop systems."

- 'CorDECT Wireless in Local Loop System …Limited Mobility ….Unlimited Growth,' http://indianinnovatorsforum.org.

"Thanks to CorDECT technology that offers a wireless last mile connection, many neglected smaller towns would soon find a place in the telecom map of India."

- 'CorDECT Occupies Pride of Place,' www.hindu.com, March 06, 2003.

In 2002, noted Indian academician Professor Ashok Jhunjhunwala (Jhunjhunwala) was honored with the Padmashree Award by the government of India for inventing the path-breaking telecommunication (telecom) technology CorDECT, and for successfully commercializing it in domestic and global markets. This award was yet another achievement for CorDECT, which had won recognition several times earlier. Midas Communication Technologies (Midas), the telecom technology provider that commercialized CorDECT, had also won many awards (Refer Exhibit I for a list of the awards and recognition).

Apart from being very expensive to install and maintain, these technologies also could not be used for communicating voice and data signals simultaneously. CorDECT could provide these functionalities without having to compromise on the speed and the quality of its service.

CorDECT was originally developed to provide telecom services to the rural and the semi-urban areas of India. However, after its successful implementation in these areas, it was found that CorDECT could be equally useful in urban areas as well. Due to the benefits it offered, CorDECT was soon adopted by major telecom operators not only in India, but also in countries like South Africa, Nigeria, Kenya, Brazil, Russia, Argentina, Madagascar, Fiji, Philippines and Indonesia. Impressed by its performance and potential, the United Nations Development Program (UNDP) praised CorDECT as a 'fast and cheaper mode of accessing Internet in developing countries.'

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        Case Code   ITSY032
   Case Length    16 Pages
              Period    1982 - 2004
 Organization     Midas Communication Technologies
        Pub Date     2004
Teaching Note    Not Available
     Countries    India
      Industry    Telecom

Issues

• Study the evolution of the Indian telecom industry and understand the reasons for the low penetration of telephones in the rural areas

• Get an idea of various access technologies used for proving telecom services and their respective advantages and disadvantages.

CorDECT, telecommunications, telecom, India, wireless access, network technology, cheap, telecom technology, voice, data transmission, Indian telecom industry, evolution, decades, India, penetration, rural areas, access technologies, regulatory, competition, technology.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.