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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 168.09+1.8%Nov 28 9:30 AM EST

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To: Ruffian who wrote (86215)11/4/2000 6:09:50 PM
From: foundation  Read Replies (1) of 152472
 
The Wireless Roadmap: AT&T Wireless

"We believe that AT&T Wireless will announce a move to GSM for its U.S. network in the near future...GSM offers several advantages in that it would enable AT&T to deploy GPRS packet-data services at speeds of between 9.6 and 38.8 Kbps..."
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Let me get my arms around this -

AWE will opt to install a nationwide GSM network, then upgrade it to GPRS - in order to offer customers packet data at 20 kbs?

*) At what cost, and how will they pay? Will NTT pay for a GSM network? By the way - NTT has started talking about forming "alliances" instead of buying pieces of Operators in order to expand wCDMA. Is their purse getting lighter? Will they spend on themselves in order to resolve capacity problems exacerbated by dismal wCDMA projections?

*) In what spectrum will they build this new network? AWE is presently spectrum constrained.

*) In what time frame? How long will it take to build a nationwide network - 2 years - 3?? (Perhaps GPRS handsets will be functional by then!)

*) By the time the GSM network is functioning, will there be an immediate need to upgrade to wCDMA to stay abreast and competitive with even other GSM/wCDMA operators, not to mention CDMA operators like Sprint already upgraded to 1x EV-DV and literally spewing data at 5mbs? (See Slacker's concise PCS CC review - post 86242.)

*) How will AWE's bankers, and their bankers' regulators respond? How will a cost benefit analysis of the proposed GSM network, obsolete the day it's finished, be rationalized - in light of the fact that, with the exception of the GSM map, the network will require demolition prior to upgrading to wCDMA, which proponents presently project to be in service by the time the hypothetical GSM network would be completed? All in order for AWE to offer packet data at 20kbs?

IMO, a much likelier course of action for this damaged enterprise is simply to announce that they will evolve (which, of course, is inaccurate) to wCDMA - and provide the same overly optimistic, deceptive timetables for implementation as the rest of the wCDMA crowd wield with reckless abandon. And, of course, take whatever money NTT will regurgitate...

ben
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