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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 178.29-1.6%Dec 12 9:30 AM EST
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To: Ramsey Su who wrote (11995)6/25/2001 10:42:51 AM
From: Dennis Roth  Read Replies (1) of 196959
 
W-CDMA and cdma-2000 are not equally good for Qualcomm for at least the following reason.
That except for a few Scandinavian countries, UMTS licenses do not require universal coverage as do many GSM licenses. UMTS will be deployed in urban islands with GSM/GPRS being the fall back mode in outlying areas. Also UMTS requires a a more expensive dual mode, dual band UMTS/grps/gsm phones that will be too expensive for many users without a need for high speed data or multi-media. In a GSM/UMTS system many users who don't need or can't afford UMTS will continue to use simple and cheap GSM phones or GSM/GPRS if slow speed data is good enough for their needs.

Therefore it does make a difference to Qualcomm whether a TDMA system goes to GSM/GPRS/UMTS or CDMA-2000. In a CDMA-2000 system all users have CDMA phones, from high end multimedia phones to simple voice only economy models. While if a TDMA carrier switches to GSM/GPRS/UMTS only the high end users in urban areas have the CDMA UMTS phones.

In many ways UMTS acts as a life line for GSM. It provides high speed data service for the urban elite while leaving GSM in place for the rest of the market. The success of UMTS means a smaller market for CDMA than if CDMA-2000 becomes wider spread.
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