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Technology Stocks : Nokia (NOK)

NOK 6.818

-1.6%

3:59 PM EST

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To: tero kuittinen who wrote (4829)	5/14/2000 10:54:00 AM
From: brian h	Read Replies (1) of 34857

Tero, I am really happy for Nokia shareholders on this GSM -> GPRS -> EDGE -> DS CDMA upgrade path if Nokia and GSM manufacturers are able to pull it off from the current GSM operators to take this upgrade path. May be I ought to buy NOKIA shares myself for this great path for Nokia's profitability in the near future. How much and how many upgrades are needed in the next 3-5 years period. The total costs have to be daunting if this upgrade path is selected. A required basestation and handsets upgrades for every single upgrade path. The only thing in common is GSM voice. Wow. Someday Nokia and GSM world need to design some five mode basestations and handsets for those operators choosing this upgrade path. May be these operators are really willing to channel their hard earned money to GSM world manufacturers such as Nokia. From Ruff's link - A Comparison between GPRS and cdmaOne Packet Data mobiledataevolution.com The authors have worked for Vodafone for a long time. ------------------------ Summary From this analysis, we can see that the packet data design that is standardized in the network and handsets of the cdmaOne standards technology facilitates easier and therefore less expensive packet data implementation than GPRS from a network operator, handset, application developer and corporation's point of view. All cdmaOne handsets are packet data capable and work on all implementations of cdmaOne networks. Phones do however remain a significant barrier to the widespread uptake of higher speed data services on both GSM and CDMA networks. Any network operator who is facing the decision of which network to buy should consider the upgrade paths of each network. GSM networks were not designed for packet data-- a GPRS upgrade adds this capability but at a higher cost than cdmaOne. Also, the GPRS network is not based on standard IP network elements, which will result in a more complicated integration than the cdmaOne packet data solution that was designed with standard IP in the handsets and with standard IP elements in the network. These standard elements will follow the cost curves of the Internet network elements. Additionally, GPRS and EDGE dedicate network resources to data taking capacity away from the GSM voice network which could cause network congestion. CDMA is a voice and data solution where voice and data share the same resources. 1x also increases data speeds to 144 kbps and doubles the voice capacity of current cdmaOne systems By incorporating standard IP protocols and network IP routing, cdmaOne sensibly maximizes the leverage it gains from the considerable economies of scale conferred by the Internet. This will allow cdmaOne carriers to offer the equivalent Internet services as GPRS and EDGE operators with a lower overall investment in equipment and human resources and without decreasing voice capacity. Network operators will more readily find the skills to integrate equipment and develop services because the same IP elements are used on the landline Internet. ------------------------------ Brian H.

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