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Technology Stocks : Nokia (NOK)
NOK 6.375+2.5%3:59 PM EST

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To: Gus who wrote (5396)6/14/2000 1:08:00 PM
From: Caxton Rhodes  Read Replies (1) of 34857
 
Well Gus I too qualify as a Qualcomm fananctic. In answer to your questions:

1) A CDMAOne network is 2-3x more expensive than a comparable TDMA/GSM network, with TDMA/GSM costs going down faster than CDMAOne costs.

CDMA 1X will have a minimum of 6 times the capacity of a TDMA/GSM network. Seems to me that makes CDMAOne significantly cheaper than TDMA/GSM. 1X will have 15 times the data rates of current GSM systems. If and when Edge and GPRS work, don't look for them to go above 50 kbs anytime within the next two years. Also don't forget that as GPRS and Edge are installed, GSM capactiy decreases. Q's 1X, which provides 150 kbs initially, which is six times current GSM. CDMA 1X is cheaper and significantly better.

2) A CDMAOne handset is more expensive than a comparable TDMA/GSM handset, with TDMA/GSM handset costs going down faster than CDMAOne handset costs.

And the new cdma handsets (with even more capabilities) will be able to sell for even more.

The rest of your assertions are meaningless.

One more thing, as GSM carriers examine spectrum and WCDMA upgrade costs, comparing them to the ugrade costs for existing CDMA networks, greenfield type application sceneerios are no-brainers for Q's CDMA. As for existing GSM networks, air interface overlays plus HDR may very well offer them a significantly cheaper alternative.

The rubber hits the road in the next 18 months when 1X systems go in place. We will see who is hyping and who is not.

Caxton
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