Chunghwa Telecom to offer CDMA-cellular service
Taipei, Sept. 20, 1999 (CENS)--State-run Chunghwa Telecom Co., Ltd. plans to digitize its analog-cellular system with 64Kpbs-class code division multiple access (CDMA) technology as a preliminary step for its third-generation mobile-communications service. The company plans to introduce the new service in early 2001.
At present, around 500,000 subscribers use Chunghwa s analog system.The telecom is anxious to digitize its cellular service to prevent illegal copying of subscription numbers, currently a problem with the analog system. Such illegal copying was involved in the kidnap and murder of the daughter of a local celebrity several years ago.
Chunghwa says it will publicize the specifications of its CDMA-cellular service in November and determine the qualified contractors in February next year. The service will be introduced soon after the contract is awarded. The company originally intended to debut its CDMA service next June, but moved up the date to beat other providers to the market.
Chunghwa plans to adopt CDMA technology supporting the IS-95B standard, which offers transmission speeds up to 64Kbps. The global system for mobile communications (GSM), currently the mainstream digital-cellular technology, offers a maximum speed of 9.6Kbps. Some GSM-system suppliers have introduced general-packed radio service (GPRS) to hike the speed to 100Kbps. However, no handsets support the upgraded system.
Chunghwa decided to go with the 64Kbps CDMA system due to its high transmission speed and technological maturity. The company intends to cooperate with Internet service providers (ISPs) to offer wireless Internet-communications service.
The company plans eventually to upgrade its CDMA system to facilitate 144Kbps transmissions, the standard speed for third-generation (3G) mobile communications. 3G systems offer bandwidth for data, voice, and multimedia services.
The five-year contract for the CDMA system makes any agreement subject to price negotiation. The stipulation will give Chunghwa the bargaining position it needs to make subsequent expansions of the system. U.S., South Korean, and European firms, including Motorola, Lucent Technologies, Nortel Networks, Samsung Electronics, Lucky-Gold Star, and Ericsson, are all vying for the contract, which is expected to be worth hundreds of millions of US dollars.
Motorola and Samsung have already sent executives to Taiwan to promote their systems and offer cooperation terms. Both companies have agreed to transfer technology to Taiwan if their bid is accepted.
Local industrial watchers predict that the Chunghwa contract will fuel demand here for CDMA phones, the dominant maker of which is Samsung, with a 28.5% global share, followed by Qualcom Inc., Lucky-Gold Star, Sony, and Nokia.
There are 30 million CDMA-cellular subscribers worldwide, representing 11% of the world total of various wireless systems. In South Korea alone, there are 19 million CDMA-cellular subscribers. The number is estimated to soar to 140 million subscribers in 2003, representing around 20% of the total cellular phone market.
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