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Technology Stocks : Nokia (NOK)
NOK 6.495-4.3%Jan 8 3:59 PM EST

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To: tero kuittinen who wrote (3287)1/17/2000 5:45:00 AM
From: Mika Kukkanen   of 34857
 
Just to add something to Tero's GPRS to WCDMA theory

Operators today ARE making the first steps in 3G by investing in GPRS. GPRS provides a subset of the full functions of UMTS.

Most suppliers have formulated GPRS technology to be seamlessly upgradeable to UMTS without the need for large infrastructure swap outs (mostly by software upgrades, certainly the case for Ericsson equipment). The biggest change is only in the air interface, something people forget is that GSM included the definition of the whole network and protocols (e.g., the fixed backbone network.). UMTS uses this to build upon. The main transition is to a packet based network, where data is sent in packets and voice is still circuit switched. This will eventually change as all operaotrs (fixed and mobile) will eventually go to a real-time IP based network.

There is only one company to my knowledge that offers products that operators are purchasing for today's 2G networks that supports the future 3G (I would be please to know if Nokia or anyone else is also selling this today and I understand this could get quite contentious).

I would argue that EDGE may not be the be all, it would only realistically be an alternative if an operator does not get a 2GHz license.

Also the idea that there is a large base of GSM customers compared to cdma is fine when talking about consumer products. However, when you sell to operators the difference becomes notably HUGE!

There is also an order of magnitude when comparing the interest of companies working with UMTS suppliers to provide services and applications compared to cdma2000. The reason? As stated above, the size of market (as stated above, infrastructure, applications and services are sold to operators and in most GSM markets geographical coverage is also well over 90%, as is population coverage, which means a lot of kit has been sold for even relatively small countries).

Gotta go now.

M
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