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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 179.02+3.7%Nov 5 3:59 PM EST
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To: engineer who wrote (3673)11/27/1999 11:46:00 AM
From: kech  Read Replies (2) of 13582
 
Engineer- If as you say the transition would not be so costly from an infrastructure viewpoint, perhaps the marketing problems are greater for ATT converting to CDMA. Here are some:
1) Getting heavy users to scrap TDMA digital phones and buy new CDMA phones. But ATT would just have to have lower rates on CDMA with some incentives to make this happen.

2) More important, would they have trouble marketing the One Rate plan with national roaming if CDMA is, at least initially, only available in some cities which had capacity problems. Could the CDMA/analog phones provide this roaming on analog? Would ATT high end users be content roaming on analog with inferior call quality? Would the cost of meeting this roaming require them to spend more to upgrade analog - hardly a wise decision but perhaps a necessary transition investment?

3) Finally, CelllarOne has always marketed their TDMA digital as "Digital" or "Digital PCS". Would the nightmare of explaining to their customers that there are actually two digitals, and their current one is inferior, offset any advantage they would get of actual spectrum efficiency.

4) When ATT went to PCS they bought 1900 Mhz spectrum and are using that with 800 Mhz spectrum for national roaming. (I think they are the only ones doing this digital at two different bandwidths). This might also require their CDMA network and phones to do this eventually which could also be a headache.

Just some thoughts on why ATT is reluctant.
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