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Technology Stocks : Interdigital Communication(IDCC)
IDCC 348.69+0.7%Nov 14 3:59 PM EST

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To: Bill Dalglish who wrote (4226)5/18/2000 10:01:00 PM
From: Manx  Read Replies (1) of 5195
 
Bill: I would appreciate your comments on this---it is from Qualcommm thread.

May. 17, 2000 (CT Wireless, Vol. 4, No. 94 via COMTEX) -- The third-generation interface contract awarded by worldwide wireless leader
Vodafone AirTouch [VOD] and the 3G choice by Japan's second-largest carrier, DDI, reflect the inevitable market ranking of the two CDMA-based
3G standards.

Wideband-CDMA (W-CDMA), Vodafone's choice, will be used by more carriers around the world than cdma2000, DDI's choice.

Vodafone hired Ericsson [ERICY] to deploy W-CDMA technology for its U.K. GSM network. Vodafone expects to launch commercial 3G services in
the United Kingdom in 2002.

DDI has yet to hire a technology vendor, but will use cdma2000 as its 3G interface. That choice gives a stake in Japan's market to cdma2000 backers,
led by CDMA pioneer Qualcomm [QCOM] and Kyocera [KYO], the Japanese manufacturer that bought Qualcomm's handset business last year.

Japan's dominant wireless provider, NTT DoCoMo, [MBNXY], operates a GSM network and, like Vodafone, will deploy W-CDMA as its 3G
interface. Japan Telecom's J-Phone GSM network also will deploy W-CDMA for 3G operations.

In November last year, an International Telecommunication Union committee adopted W-CDMA as the 3G evolutionary path for GSM and TDMA
networks, and cdma2000 as the 3G path for CDMA networks. The organization also required roaming capabilities between the two interfaces.

Because GSM networks outnumber CDMA operations around the world, more wireless carriers will use W-CDMA for 3G networks than cdma2000.

With the stage set for W-CDMA leading the 3G interface market, cdma2000 backers will be happy to get any network they can, said Tole Hart,
wireless infrastructure analyst for telecom market research firm Dataquest, a subsidiary of GartnerGroup [IT].

"They want to get at least one wireless carrier in Japan," Hart told Wireless Today. "One carrier's better than nothing. It's still a victory."

DDI, a unit of Kyocera, is merging with the IDO and KDD wireless operations in Japan. Even with the merger, DDI still will be the No. 2 wireless
carrier in Japan.

The CDMA Development Group is cdma2000's biggest proponent. While cdma2000 trails W-CDMA in the number of networks that will use it, the
CDMA Group reported its pet technology will be the first 3G interface actually deployed for commercial service.

SK Telecom in Korea plans to introduce 3G services via cdma2000 this year. Bell Mobility [BMX], Nortel Networks [NT], Qualcomm, Samsung and
Sprint PCS [PCS] have completed 3G wireless calls using cdma2000; and Telstra [TLSR], Verizon Wireless and LG Telecom are conducting
cdma2000 trials.

While carriers in Asia and Europe must simply deploy the appropriate 3G interface, U.S. wireless providers must first acquire the appropriate spectrum
for 3G services. Asian and European markets have ample spectrum available for 3G networks, but little U.S. spectrum is available.

The FCC plans for spectrum in the 700 MHz bandwidth used by UHF television stations to be available for 3G deployments, but the broadcasters have
until 2006 to vacate that spectrum. The commission has delayed its 700 MHz auction from June until September to allow carriers more time to
determine their best strategies for participating.

The best strategy for the FCC, Hart said, is to assure sufficient spectrum is available for U.S. carriers' 3G needs. Each major carrier, particularly, should
be assured of the ability to launch 3G services, he said.

"It's in the best interest to get them all some 3G spectrum so they can be competitive across the market," Hart said. "The more choices there are, the
better it is for the consumer."
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