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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 152.74+0.8%1:27 PM EST

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To: Dennis Roth who wrote (138)7/3/2000 12:18:25 PM
From: Dennis Roth  Read Replies (2) of 197458
 
CDMA2000 losing battle in 3G

telecomasia.net

The third-generation wireless standard
championed by Qualcomm of the US is facing
a bleak future after two Korean operators and
the third 3G licensee in Japan opt for the rival
W-CDMA standard.

SK Telecom and LG Telecom in Korea and
J-Phone, the latest operator to secure a 3G
license from the Ministry of Post and
Telecommunications in Japan, all selected to
go with W-CDMA last week, leaving Japan's
DDI Group as the only operator in the world
so far to adopt CDMA2000 for 3G services.

While existing second-generation CDMA
networks are expected to migrate naturally to
CDMA2000 on their existing spectrum, the
decision by the operators to go with
W-CDMA on the official 3G spectrum
identified by the ITU means CDMA2000 will
have very little presence in the 3G arena.

Since KDDI is the only operator that has
chosen CDMA2000 technology on the higher
2 GHz 3G spectrum, they will require
specialized dual mode or dual band handsets
in order to roam overseas.

In addition, there will be no economy of scale
for CDMA2000 systems deployed on the
higher frequency bands. Equipment suppliers
vying for DDI's 3G contract will be
developing a unique system for the operator,
resulting in higher prices for both network
equipment and handsets.

The only major operator still pondering
CDMA2000 on the ITU spectrum is KT
Freetel, who has yet to decide on their 3G
platform. Reports suggest KT Freetel is
leaning strongly towards W-CDMA, but
might be forced to adopt CDMA2000 if its
majority shareholder, the Korean
government, is put under pressure from US
trade lobby.

US operators, CDMA's staunchest supporters,
do not have the option of deploying
CDMA2000 networks in the ITU spectrum
because the frequency bands are already
occupied in the States.

The CDMA camp and Qualcomm were dealt
a major blow last month, when China
Unicom, the second mobile operator in China,
scrapped plans to roll out a second-generation
CDMA network. It's subsequent statement of
a plan to trial a CDMA2000 system later this
year has often been dismissed as another
empty promise by industry insiders.
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