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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: RocketMan who wrote (14430)1/7/2000 5:59:00 PM
From: Eric L  Read Replies (1) of 54805
 
RocketMan,

<< Edge can get speeds up to 384kbps, well short of the 2.4 mbps CDMA HDR rates being predicted by Q >>

Yes EDGE (Compact) will theoretically support data rates up to 384 KBPS and of course the 2.4 mbps speeds of CDMA HDR is analogous to ETSI UMTS with UTRA and (3G) UWC-136 which will also of course use a CDMA air interface. Here, however we are really talking 2.5G wireless mobile telephony in existing spectrum rather than 3G. I think we are talking about reasonably near term voice and data services (2002 to 03) at relatively modest rate plans for the typical consumer of mobile wireless telephony at that time.

<< If this is so, wouldn't T be left in a backwater by building out Edge while competing with a better solution in CDMA? >>

Perhaps. Depends how you define "better". The initial objective of the alliance between the GSM Alliance and UWC is to provide global interoperability between existing (2G) GSM networks which will evolve to 2.5G GPRS in many cases, and existing or evolved TDMA networks. Relative to that objective CDMA is not a "better" solution. Interoperability and global roaming will commence this year, before GPRS, & certainly before EDGE networks are built out.

<< Or am I missing something? >>

I think you might be primarily looking at this from a pure technology point of view. Here we are dealing however with matters that go beyond technology, and business models. We are instead, IMO, dealing with a clash between a Proprietary Open Architecture and (2) Committee Based Architectures (RFM pages 53 and 54) and an alliance between 2 organizations and their respective standards bodies, that has been struck to accomplish specific strategic business objectives. Contract decisions struck by T and strategic direction will not be reversed, IMO, by theoretically superior technology.

Perhaps I am missing something, myself. In the interim, I personally am not adding to my "Q" position on the probability that T or the UWCC will reverse their recent decisions.

- Eric -
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