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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Valueman who wrote (20739)8/1/2000 12:39:18 PM
From: Rich Wolf  Read Replies (1) of 27311
 
OT to 'valueman'

To make a proper comparison of the technologies, one needs to appreciate the concept of frequency reuse. Average throughput per user from large cellular sites won't support 144k for as many people in the footprint as MCOM can with its microcellular network, even if MCOM dropped to 144k. MCOM is 'guaranteeing' average throughput of 128k, and the beta test in San Diego resulted in over 170k. As user density increases, the MCOM network allows an inexpensive expansion by the addition of more poletop receivers. The software scales the powers, etc., so each user is still only visible to 2 or 3 poletops. It has a beautiful scaling to its architecture.

Additionally, MCOM doesn't have offsetting needs of voice versus data in the same band. If the CDMA providers attempt a flat-rate pricing, their data users would push out the voice users, and the providers' revenue would drop. The only role for systems such as the QCOM/HDR system is to provide minimal access, not 'always on' websurfing.

The targeted markets for these systems are distinct.

Rethink your comments.
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