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Technology Stocks : Nokia Corp. (NOK)
NOK 6.500-0.1%Jan 5 3:59 PM EST
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To: Puck who wrote (1084)8/3/2001 12:03:23 PM
From: Puck  Read Replies (2) of 9255
 
The article entitled "Complaints Mount Over CDMA2000 Service" raises an interesting issue. If I'm not mistaken, the marketing of CDMA2000 has focused on the belief (or perception) that it is substantially more efficient than WCDMA. As a result of this superiority in efficiency, the argument goes, a CDMA2000 operator wouldn't need to purchase as much equipment, such as base stations, as a WCDMA operator in order to handle the same volume of data transmission. The end result being that CDMA2000 operators would have a superior cost structure versus the competition and thus be more profitable and competitive. In fact, Slacker last winter argued that one of the largest CDMA-centric carriers in the U.S.--Sprint--would evince its superior cost structure this year by undercutting the competition in price, taking market share from rivals and maintaining or increasing its level of profitability. According the article I just posted, however, it appears that the number of points-of-presence of base stations in the field is still crucial to the end user experience, notwithstanding how efficient CDMA2000 infrastructure may or may not be in real world conditions compared with WCDMA infrastructure. It would thus appear that a CDMA2000 operator may still have to purchase as much equipment as a WCDMA operator in the network build-out in order to provide satisfactory network coverage for the end-user.
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