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To: Bux who wrote (43329)10/5/1999 11:30:00 AM
From: Joe NYC  Read Replies (1) of 152472
 
Bux.

I know about all the advantages of CDMA over competing technologies. The 2-3 times advantage in capacity over TDMA has been thrown around a lot. But it is hard to pinpoint how much is the cost to deploy hardware from your typical 10 cents per minute price.

Is the cost of TDMA base station equipment identical to CDMA so that the conservative 2 fold increase in capacity means 50% reduction in cost? Is it a cost reduction from 10 cents to 5 cents, or perhaps from 1 cent to 1/2 of a penny, or even less?

What is the percentage of the coverage where the carrier equipment on more than 1 channel? My guess is that in a lot of suburban and rural areas, all you have is 1 channel which is far from fully used. Suppose a CDMA carrier has a 5% utilization and TDMA has 10 to 15% utilization. Advantage of CDMA would be irrelevant.

Whatever the differences are in cost of the hardware of the carrier, It's obvious from the relative pricing parity that the CDMA operators have not chosen to use the lower cost and higher network capacity as a tool to undercut AT&T pricing. CDMA operators have actually been responding to AT&T nationwide pricing initiatives.

Whether TDMA has the current lead in data rollout is irrelevant. The popularity of wireless data will merely speed the eventual dominance of CDMA

Ok, you lost me there. How can popularity of wireless data speed the eventual dominance of CDMA if the CDMA carriers have not chosen to deploy data on their network?

Joe
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