What is GSM? 6 Secrets Every Business Owner Must Know

As a business owner, staying connected to your customers, partners, employees, and other stakeholders is crucial for business success. Imagine trying to expand to international markets or outsource your business operations to expert talents worldwide without a reliable communication system, and all your dreams for your business would be impossible. Staying connected isn’t just a cliche; it’s the lifeline of your business. This is why you need to understand what is GSM and how it works.

What is GSM? GSM stands for Global System for Mobile Communications, a digital mobile network in over 200 countries. It has become the standard for data and voice transmission for mobile networks. In this article, you’ll learn what is GSM, what GSM entails in business, how it shapes operational and communication efficiency, and its role in helping you build a reliable communication infrastructure. Also, you’ll learn how ScaleSupport can partner with you to build GSM-powered scalable support solutions for your business. 

What is GSM?  

As mentioned earlier, GSM stands for Global System for Mobile Communication. It was developed in Europe in the early 1980s, emerging from the need for a pan-European mobile telephone standard. In 1983, the Groupe Spéciale Mobile (GSM) Committee was formed within the European Conference of Postal and Telecommunications Administration (CEPT) to start the work. 

Several discussions were held between 1982 and 1985 on whether to build an analog or digital system before the first specification was agreed upon in 1987 and first implemented in Finland in 1991. Since then, GSM has become the standard for mobile communications with over 5 billion subscribers worldwide, beating its competitor, CDMA.

GSM works by transmitting voice and data between service providers and mobile devices using a network of radio frequencies and cell towers. In more technical terms, it combines Time Division Multiple Access (TDMA) and Frequency Division Multiple Access (FDMA) to enable multiple devices to share the same radio frequency channel.  

Also, each GSM device has a SIM (Subscriber Identity Module) card which identifies and authenticates users, stores their unique mobile number and other relevant information, and facilitates making calls, accessing internet services, sending messages, etc. The SIM card also allows users to switch service providers or mobile devices, making it flexible and compatible for many businesses. 

Additionally, GSM is accepted as a global standard for three reasons: its standardised protocols are open, meaning networks and mobile devices from different manufacturers can work together seamlessly; its security features, such as encryption, protect sensitive information; and its flexibility and compatibility with various devices and networks. 

What is GSM in a Business Context 

For any business owner who wants to stay connected, GSM is the go-to for mobile-first, flexible, and modern business communication infrastructure. It provides GSM customer support that helps you always reach your customers. Communication is the lifeblood of any business, and without seamless and flexible communication, no business can reach its full potential. The origins and workings of GSM may sound technical, but you need to care if you want to scale your business profitably.

That said, what is GSM in a business context?

• Mobile and Remote Communication: What is GSM in business communication? It means your employees are connected 24/7 regardless of location. Whether working in the field or remotely from the comfort of their homes, your team can effectively communicate and collaborate on business projects.
• Customer Support: Listening to your customers and business growth go hand in hand. Customers will become loyal and even refer others to you when they know their opinions are valued. However, you can’t hear from your customers without a seamless communication system. This is where GSM customer support comes in, you can set up mobile agents and virtual call centers to attend to every customer query. 
• Scalability: As your business grows, the need for faster and more reliable communication grows. You need to stay on top of the situation always, and GSM allows you to do this by adding more devices and locations without complex infrastructure changes.

Let’s explore some use cases for what is GSM in business.

• Retail: Inventory tools and mobile POS systems rely on GSM to stay connected and allow sales anywhere, enhancing customer experience. 
• SaaS: SaaS companies can set up remote support teams and GSM for call centers to attend to customer queries across different time zones, improving customer support.
• Logistics: Managers, drivers, and customers can track vehicles and communicate with one another in real time, enhancing collaboration among all stakeholders. 
• Service-based businesses: Service providers of different kinds communicate with their customers using GSM-enabled mobile devices, exemplifying GSM and business communication.

GSM vs. CDMA: What’s the Difference?  

GSM vs CDMA is a fundamental debate that provides more insights into the advantages of GSM (Global System for Mobile communication). CDMA (Code Division Multiple Access) is another important technology for mobile phone communications. The origins of CMDA can be traced to the 1930s when Dmitry Ageev, a Russian scientist, published research on using multiplexing techniques for communication. It was adopted during the Second World War when the Allied Forces sought to ensure the enemy wouldn’t intercept their transmissions. CMDA has improved signal security and allows multiple users to share the same bandwidth, which makes it resistant to jamming. 

However, in the following decades, the principles on which CMDA was built were refined at various points. In 1957, Leonid Kupriyanovich built an experimental mobile phone system using the CDMA infrastructure. Then, in the 1970s and 1980s, engineers and researchers started working on how CDMA could be used for commercial and civilian communication, as the need for wireless communication grew.

This finally became a reality when Qualcomm Inc., a US-based company, began using CDMA to develop digital cellular systems. At this time, people were using analog networks or migrating to GSM. In 1989, Qualcomm successfully built its first CDMA-based mobile phone, which was adopted in the US and some parts of Asia. While GSM has remained dominant globally, CDMA has continued evolving as a solid mobile communications alternative. 

Key Technical Difference

The key technical difference between GSM and CDMA is that GSM uses Time Division Multiple Access (TDMA), which allows multiple users to share the same frequency. Each user has a time slot to prevent interference and a SIM card that allows switching devices and network carriers. On the other hand, CDMA uses a spread-spectrum technology that spreads voice and data transmission over multiple frequencies. Also, the user information is directly tied to the device, and switching will involve carrier intervention. 

Availability and Carrier Compatibility 

Over 80% of the mobile phones in the world, which translates to over 5 billion users, are GSM carriers. GSM dominates the market globally, from Europe to Asia and Africa. However, in the US, with carriers like Sprint and Verizon, and in some parts of Asia, CDMA is widely accepted. Even at that, the rise of networks like 5G and LTE heavily competes against it. Additionally, GSM allows for carrier compatibility. You can easily switch carriers or devices with GSM, unlike CDMA, which is restrictive. Changing devices or network plans requires getting approval from the carrier. As such, GSM is more compatible with international networks and global roaming. 

Why is GSM More Flexible for Business?

GSM is more flexible because it allows carrier flexibility. Remote teams can easily stay connected and set up GSM for call centers regardless of each person’s choice of device or carrier. Using GSM requires no special setup—just a device and a SIM card. Additionally, it supports international expansion. If your business requires international travel or expands to global markets, GSM’s compatibility guarantees reliable communication. Your team can set up GSM for remote customer service to handle customer queries and provide quality support. Besides, it is more dominant, and a broad range of devices businesses can choose from comes with it.

Use cases for different scenarios.

CDMA is the best option if your business operates mainly in North America, like the US, because of its superior network coverage and performance in the region. However, GSM is best if your business requires remote teams, quick onboarding, frequent travel, international expansion, or device/network flexibility. 

Benefits of GSM for Customer Support & Scaling Teams 

GSM helps any modern business build a flexible and reliable communication plan to meet the demands of today’s digital-first world. Whether planning to expand your team globally or improve your customer experience, GSM provides practical advantages you can leverage. 

• Easy setup for virtual and remote agents: Unlike brick-and-mortar businesses that require complex infrastructure to set up support agents, businesses can set up GSM for remote customer service managed by virtual and remote agents to address customer queries regardless of location. No matter where your team members might be, with a GSM-enabled device and SIM card, they can be onboarded quickly and connect to any customer globally.
• International and multi-location flexibility: GSM has a global reach, which makes it best suited for businesses that operate across multiple locations. Your team can work from anywhere with network coverage without losing access to essential tools. GSM allows you to stay reachable, serve customers across different time zones, and provide 24/7 support.
• Cost-effectiveness and device compatibility: Due to GSM’s wide acceptance in different regions, there is a broad range of devices and competitive network plans to choose from. You can choose the device and network that supports your operational needs and budget. Also, the flexibility to remove your SIM card allows you to manage multiple devices without heavy hardware investments or carrier costs.
• Supports tools like SMS support, voice calling, and VoIP: Beyond voice calls, GSM supports MMS, SMS, and VoIP (Voice over Internet Protocol) solutions, naturally helping businesses to attend to customer queries immediately they are received. It allows your team to provide multichannel support from calls to texts to cloud-based applications like WhatsApp. As such, businesses can personalise interactions with customers and respond faster, leading to higher customer satisfaction. 

At ScaleSupport, we build GSM-powered support infrastructure for businesses, tailored to your operational needs and growth demands. Our support infrastructure systems eliminate communication bottlenecks and help you hire globally and scale internationally. Our GSM-friendly support systems grow with your business, ensuring exceptional support and more satisfied customers. 

How Scale Support Helps Businesses with Scalable Communication Systems  

Considering the competitive business landscape enhanced by digital transformation, businesses need a reliable and flexible communication infrastructure. Staying connected with a phone is no longer enough; you need a communication system that can grow with your business. This is where Scale Support comes in. 

They leverage GSM technology to design and build scalable communication systems that allow you to connect with your team and customers seamlessly. This helps reduce cost and deploy support rapidly. Whether you are a startup looking to grow or an established business looking to expand internationally, Scale Support has the perfect solution. 

Scale Support uses GSM technology to design flexible, global support systems based on your business needs. This GSM-integrated support system includes everything from mobile setups to cloud-based tools. As such, your virtual agents can reach your customers round-the-clock without needing physical call centers. 

Furthermore, we are experts in building support systems for remote teams. Without communication, there is no collaboration. And without collaboration, no work gets done. This is why we have helped multiple businesses manage remote teams across continents through a GSM-powered communication system, from voice calls to global roaming. Our communication systems integrate CRM platforms and mobile apps for constant customer service. We also provide training to help support teams function efficiently. 

Every business that partnered with Scale Support has experienced increased operational efficiency and customer satisfaction. For instance, retail companies have used our GSM-integrated support system to ensure smoother transactions across multiple stores. At the same time, SaaS startups have set up virtual call centers to attend to customer needs 24/7, enhancing customer retention. 

If you want to replicate such results in your business or prefer custom, scalable solutions, contact us. We just don’t provide support solutions; we provide GSM-integrated support solutions that help your business thrive. 

Conclusion

GSM’s ease of use, device compatibility, and global reach make it the first choice for any business that wants to communicate seamlessly, manage remote support teams, and scale internationally. Besides, it doesn’t require heavy infrastructure costs, as you can easily switch devices or carriers by moving the SIM card. 

Beyond being a smart choice for every business owner, GSM is a strategic advantage you can leverage for fast business growth. It allows integration with CRM platforms and other relevant apps, offering you the tools and space to grow. 

However, to fully take advantage of GSM’s offerings, you need service providers like Scale Support to provide custom, GSM-integrated support systems. These tailored systems are designed for and with your business in mind, thereby growing with your business and evolving with your needs. They also offer a range of services, so there are options for everyone.

It’s important to evaluate your options and choose the right solution provider for your business needs so you get value for your money. With Scale Support, you can never go wrong.

Ready to take the next step that guarantees your business growth? Start by scheduling a free consultation with us to discuss your unique needs.

Dianne Florendo

Dianne has extensive experience as a Content Writer, she creates engaging content that captivates readers and ranks well online. She stays on top of industry trends to keep her work fresh and impactful. She has a talent for turning complex ideas into relatable stories. When she’s not writing, you’ll probably find her with a crochet hook in hand or working on a fun craft project. She loves bringing creativity to life, whether it’s through words or handmade creations.