Qualcomm 3G Surprise?>
Telecom '99 trade show features a couple of 3G-related
surprises
SATURDAY, OCTOBER 16, 1999 12:20 AM
- CMP Media
Oct. 15, 1999 (Electronic Buyers News - CMP via COMTEX) -- Silicon Valley- The
deployment of next-generation wireless networks is rapidly changing the
landscape in the competitive cell-phone chipset industry.
At last week's Telecom '99 trade show in Geneva, for example, Qualcomm Inc.
reversed its previous strategy by introducing a chipset that supports the emerging
Wideband-CDMA (W-CDMA) standard, one of three protocols vying for dominance
in third-generation, or 3G, wireless networks. A cell-phone chipset handles the
voice processing and other critical functions in a handset.
For years, Qualcomm has been a staunch supporter of a competing 3G standard
called cdma2000, and recently announced a related chipset line.
In another surprising move at Telecom '99, STMicroelectronics jumped into the 3G
market with a deal to co-develop cdma2000 chipsets for San Diego-based Dot
Wireless Inc. The deal could put Dot's existing alliance with Philips/VLSI
Technology Inc. in jeopardy, observers said. Dot and Philips/ VLSI are
co-developing CDMA-based chipsets for existing wireless systems.
Meanwhile, DSP Communications, LSI Logic, Texas Instruments, and others are
rushing into the 3G-based chipset market to capitalize on the booming business.
Global sales of 3G-enabled handsets are expected to grow from $1.5 billion in
2001 to $9.2 billion in 2005, according to Forward Concepts Co., Tempe, Ariz.
In theory, 3G, which could be deployed as early as next year, is expected to unify
the current digital cellular standards-CDMA, GSM, and TDMA-under one
technology umbrella. 3G technology also is expected to boost wireless data rates
for handsets from 9.6 Kbits/s to 2 Mbits/s.
To date, however, 3G is split into three competing and incompatible camps:
W-CDMA, cdma2000, and UWC-136. Qualcomm is leading the charge for
cdma2000, while Ericsson, Motorola, Nokia, NTT, and several other companies
are pushing W-CDMA. The UWC-136 standard is an upgraded version of TDMA.
Consequently, 3G networks will remain fragmented for some time, predicted Luis
Pineda, director of product marketing for the CDMA Technologies Division at
Qualcomm, San Diego.
So chip makers must hedge their bets and support numerous standards, Pineda
said. "We're broadening our product offerings based on the future developments of
CDMA technology," he added.
Qualcomm announced the MSM5200, a chipset that supports the W-CDMA
standard. W-CDMA, a direct-sequence technology that is basically an upgrade to
GSM, will be deployed in Europe, Japan, and in parts of Asia and the United
States.
Qualcomm didn't disclose the product specifications for the MSM5200, but the
announcement gives it a potential chip offering in two of the three 3G camps.
Qualcomm recently unveiled the MSM5100, which supports the multicarrier form
of CDMA, also known as cdma2000. Both chips will be based on a 32-bit RISC
core from ARM Ltd. The MSM5100 will be shipped early next year, while the
MSM5200 will be available in 2001.
Qualcomm may have reversed its strategy to back W-CDMA after recently settling
its patent dispute with Sweden's L.M. Ericsson. Under those terms, Qualcomm
gained access to Ericsson's GSM technology. Meanwhile, Ericsson obtained
CDMA technology from Qualcomm and agreed to buy its infrastructure business.
Qualcomm is also in the process of selling its handset business, which will turn
the company into a chip and IP supplier. Qualcomm already owns 89% of the
CDMA-based chipset business, according to Edward Snyder, an analyst with
Hambrecht & Quist LLC, San Francisco.
STMicroelectronics, which also wants to become a powerhouse in the cell-phone
chipset business, is hoping to jump-start its efforts through the alliance with Dot.
Under the terms of their agreement, ST and Dot have established a design team in
San Diego to co-develop chipsets and software for cdma2000 applications.
The companies will develop a chipset platform based on ST's ST100 DSP
architecture, according to Mark Hopkins, U.S. director for ST's Wireless Division.
By: Mark LaPedus
Copyright 1999 CMP Media Inc.
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