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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Uncle Frank who wrote (17377)2/8/2000 9:50:00 AM
From: Sommers  Read Replies (2) of 54805
 
Re: CDMA

Allows multiple users to operate simultaneously over a specific bandwidth. The users are kept separate by their distinct user-signal codes.

Sounds simple enough. But exactly how does it work? In a word: math. Complicated math.

For example, how many users can be supported at any one time?

1. Divide bandwidth by transmission rate
2. Divide that result by the energy to noise ratio
3. Multiply that result by (1/1 + the interference factor)
4. Multiply that by power control factor
5. Times (1/voice activity factor (or 1 if data))
6. Times gain due to sector antenna

But that's not the hard part. How do you explain to someone how to manage a CDMA network? How do you keep it operating on a day to day basis? How do you detect problems and diagnose them? How about adding and removing equipment, maintaining current equipment, security issues, administration, billing subscribers or testing software and hardware?

CDMA's strongest suit may be it's lower cost to manage than GSM. But what will be the crucible for GSM and TDMA networks? It has to be the demand for wireless data. If the demand is huge, they're screwed.

Data consumes much more spectrum than voice. If demand explodes (for both data and voice as expected), the assigned radio spectrum assigned to a particular carrier's network will eventually be depleted.

CDMA networks are proven to have more capacity than that of TDMA or GSM.

Why is CDMA superior?

1. Lower cost to manage
2. Better service to the customer
3. Solves future capacity problems

Increased capacity means more users. More users mean more profits. More profits mean lower cost for the customer.
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