QUALCOMM-The Wireless Wonder in 1999 Message Board

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Technology Stocks : QUALCOMM-The Wireless Wonder in 1999

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To: GO*QCOM who wrote (271)	5/24/2000 1:56:00 AM
From: GO*QCOM	of 343

TDMA vs CDMA Part 3:Call Quality As evidenced by Bell Mobility's experience with TDMA, in the eyes of the customer the most significant criteria in selecting a new digital technology is the resulting voice quality. In this area, CDMA truly excels by employing numerous technical advancements to provide a voice quality that is as good as or better than that produced by AMPS, and is significantly better than that of TDMA. Two technical features that allow for the superior voice quality are discussed below. High quality 13 Kb voice coder: The TDMA channel structure allows no more than an 8 Kb voice coder and is planned to evolve to a 4 Kb coder. The CDMA structure uses 13 Kb in the near term providing the best quality at launch and an improved 8 Kb coder is now available for implementation. Soft handoff: TDMA employs a hard handoff when moving between cell sites, resulting in a noticeable mute on the call. This mute can be significant in cities such as Toronto or Montreal, where handoffs will occur 2-4 times per minute. CDMA, on the other hand, uses a technique known as soft handoff to eliminate this problem. Soft handoff allows the phone to receive signals from 3-5 adjacent cell sites at the same time, and combines the signals to eliminate the handoff muting as well as improving overall signal quality (by always selecting the best signal of the 3-5 that are received). Network Capacity The capacity considerations for the digital technology were very important in order to minimize the need to evolve the network in a significant way in the near future. At issue were several items: customer annoyance at yet another change, the company's desire not to have to invest additional capital in another network as well as the need to support the fast growing traffic load on the network. CDMA capacity has been a much-debated item in the industry and was the subject of significant scrutiny by Bell Mobility. At the end of the day, Bell Mobility believed that even the most conservative views of CDMA capacity were that it offered at least double that of TDMA. Further, even assuming that conservative view, Bell Mobility could meet its capacity requirements for the foreseeable future, as can be seen in the following chart:

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