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Technology Stocks : Ericsson overlook?
ERIC 9.505-0.2%3:59 PM EST
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To: DWB who wrote (1193)1/10/1998 11:44:00 PM
From: kech  Read Replies (1) of 5390
 
Daniel -On your last point to Maurice you mentioned the following:

<I would think that after reading your last post that even you would
agree that there is no reason for Ericsson to "stop current
customers from switching to technologies or software that is
available elsewhere", since we've agreed that there are no
currently available 3G systems for them to switch to, or any
GSM/CDMAone systems that can provide similar capabilities.>

One point this misses is that CDMAOne is already considerably "wider" than GSM. It is broader and can do more with data. Customers may begin switching to CDMAOne for this reason (as well as other reasons). The point of Ericsson announcing a vaporware 3G system is to forestall switching for this reason and to encourage customers to continue to hang with the GSM systems.

You also say:

<If,
as I see it, 3G and current voice systems won't compete directly,
then there is nothing in Ericsson's 3G claims to keep operators
from switching to other voice systems, if voice is all they intend
to provide.>

There are some direct substitutions since 3G for Ericsson is presumably wider than CDMAOne but CDMAOne is wider than GSM. This occurs even though the Wideband version of CDMAOne will presumably be a more "direct" competitor with Ericsson's 3G system (if it ever exists).
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