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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-67.5%Nov 7 11:47 AM EST

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To: hdl who wrote (44891)11/24/2000 2:20:58 PM
From: Mang Cheng  Read Replies (1) of 45548
 
"Qualcomm's Moves Bring cdma2000 to the Fore"

(Mang's note: in the middle of this article, it talks about coms and samsung cdma2000 1x network)

New York, Nov 24, 2000 (123Jump via COMTEX) -- While everybody is talking about
mobile Internet and 3G these days, wireless technology keeps developing in order
to grant users the long- craved ability to communicate whatever, wherever and
whenever. What it is actually all about is how to build the network of today so
it can accommodate the needs of tomorrow. Industry insiders predict that, in the
space of two years, today's infrastructure will change radically - gradually
changing our lifestyles and hopefully, enhancing the quality of life. The
undisputed proof that the new era has already begun is the construction of new
networks along with the choice of two leading technologies - the W-CDMA and
cdma2000 - as standards for 3G data exchange.

Packet Switching Everywhere

A prerequisite for enabling the easy use of services for subscribers is that the
networks can handle packet data. At present, the user must first dial up an
access server when sending e-mail via a wireless network, for example, which
occupies a complete time slot and is being termed as circuit-switched
communication. Next generation devices packet data in small packets and send
them wherever there is scope in the networks. Owing to this, several users can
use the same time slot to send information, allowing voice communication to
remain circuit-switched.

Also, a single user can have access to several time slots simultaneously and
thus have access to higher transmission speed. Theoretically, speeds can
increase to 115 Kbps, depending on how many time slots are being used and how
much traffic there is on the network at the time. In practice, it is perhaps
possible to achieve up to four times the speed that exists today. When the 2G
mobile system is fully equipped with packet data, everything will be ready for
the 3G. New and existing operators can choose between upgrading today's system
or building an entirely new radio network based on either W-CDMA or cdma2000
technologies.

cdma2000 Phases

cdma2000 is a solution based on Qualcomm's (QCOM) cdmaOne, also referred to as
IS-95, which fully supports 3G services as defined by the International
Telecommunications Union (ITU). As it offers operators to deploy data rates up
to 86.4 Kbps, faster than those now available at most homes, Japan's DDI and IDO
corporations are currently introducing commercial services including Internet
access at this speed, and Korean operator KT Freetel is also building on its
current data capabilities to offer the higher speeds. In order to provide an
incremental increase from today's 64 Kbps supported by cdmaOne - without
requiring operators to implement rates up to 2 Mbps that are not yet needed -
the CDMA Development Group worked with other standards bodies to divide cdma2000
into two phases, commonly known as 1X and 3X.

The IS-2000 standard, or cdma2000 1X, has been completed and published by the
Telecommunications Industry Association (TIA). It offers approximately twice the
voice capacity of cdmaOne, average data rates of 144 Kbps, backward
compatibility with cdmaOne networks, together with other performance
improvements. 1X refers to cdma2000 implementation within existing spectrum
allocations for cdmaOne - 1.25 MHz carriers. The IS-2000-A standard, or cdma2000
3X, expected to evolve from phase one capabilities, offers even higher capacity
such as data rates of up to 2 Mbps.

There are currently two implementations of 3X identified in the standard - the
Multi-Carrier mode utilizes three 1.25 MHz carriers to deliver 3G services,
while the Direct Sequence mode utilizes one 3.75 MHz carrier to deliver the same
services. The mode implemented would largly depend on the operator's existing
spectrum allocation and usage. With cdma2000 3X operators will be able to offer
considerably improved quality of service in addition to simultaneous support and
roaming for both cdmaOne and 1X users and much better voice capacity, adding
value and lowering cost for wireless operators.

Spreading Adoption

Worldwide, operators are unveiling plans to renovate their networks so that they
comply with the first phase of cdma2000. Industry executives are constantly
pointing at the ease of migration and cost-effective manner in which cdmaOne
supports 3G services as advantages they are realizing from their cdmaOne
investments. Tracing it back as early as November 1998, Bell Atlantic Mobile
announced that it would start phased insertion of new high-speed wireless data
capabilities over its existing cdmaOne network in 1999 based on cdma2000 phase
one enhancements then provided by Lucent Technologies (LU). According to Ted
Hoffman, vice president technology development for Bell Atlantic Mobile, most
attractive appears the 5 MHz multi-carrier scheme, which allows simultaneous
service to current customers.

On the other side of the Pacific, Telstra (TLS) announced in March this year its
plans for a showcase of innovative high-speed wireless Internet, multimedia and
packed data services for Australia. "We are very excited to be able to trial
next services on the same platform already being built using Nortel Networks'
CDMA technology," said Lindsay Yelland, group managing director, products and
marketing for the corporation. Following successful rollout, Nortel (NT) and
Telstra recorded in mid-June a world first making of cdma2000 1X packet data and
voice calls on a live 800 MHz CDMA network.

Telstra trials include testing and verification of high-speed data, data
applications including Web browsing and m-commerce together with expanded voice
capacity. While the 1X specification for high-speed data transmission is 144
Kbps, Nortel is shooting for speeds of up to 153 Kbps. Based on its Metro Cell
base stations, and advanced voice and data terminals from Samsung, the trial is
also intended to demonstrate the smooth transition from existing Nortel radio
infrastructure to enhanced networks. In March, the company used Unified
Networks' infrastructure solution to complete calls in an over-the-air
environment in its end-to-end technical trial.

Another wireless Internet achievement using the cdma2000 1X technology was
Nortel's demonstration in late September of high-speed two-way packet data
transmission in a live air trial. With terminals powered by Qualcomm's MSM5000
mobile station chipset and system software, Nortel and Bell Mobility showed
two-way streaming video - using both forward and reverse supplemental channels -
between laptop computers connected via cdma2000-enabled handhelds. The
demonstration also included real-time collaboration and videoconferencing
applications and the same capabilities were tested between a mobile user and a
stationary user in a standard local area environment.

Pioneering Commercial Service

Opening wider doors for cdma2000, 3Com (COMS) and Samsung developed the world's
first wireless data and voice network based on the technology, which was put in
commercial service by SK Telecom of Korea in the beginning of October.
The new
network allows SK Telecom customers to operate at speeds of up to 144 Kbps and
gives them access to features such as support of audio, video and text data
services, advanced packet data transmission for enhanced efficiency, along with
as much as a twofold increase in wireless channel capacity. Equipment from 3Com
and Samsung fully interoperates with other standards-based products, and is also
versatile enough to be feature-customized, giving service providers maximum
flexibility to design and develop their individual networks.

Ericsson's (ERICY) active involvement in the process has led to the disclosure
of its Packet Core Network (PCN), a key component in the evolution from
circuit-switched environment to 3G packet-switched networks. The PCN enables
end-to-end IP services in cdma2000 networks allowing direct access to Internet,
corporate intranets and multimedia networks. The new architecture lets operators
assume a variety of revenue-generating roles defined by market dynamics:
wireless ISP and content provider of an ISP. The PCN nodes comprise an open R-P
interface - the link between the radio access equipment and the packet data
network equipment - which will facilitate multi-vendor configurations in CDMA
networks. The network is expected to become available to operators at the end of
the year.

Qualcomm Hot Again

And what about the Father of it all? Qualcomm has finally managed to get hold of
the Chinese market having endured a techno-political drama, which at one point
looked to definitely be a lost cause. Lately, the company has been boosted by
China Unicom's (CHU) decision to revive its plans to pursue a CDMA network in
the country which, according to the Strategis Group, has enormous potential for
growth with current 51.6 million wireless users among a billion-plus population.
With billions of dollars at stake for Qualcomm, its prospects are looking good
and adding the planned spin-off of its chip business makes them look even
better.

However, analysts agree that the future of the CDMA technology in China remains
unclear. China Unicom, the country's second-largest wireless provider, behind
China Telecom with over 14 million subscribers, will still have to choose
between variants of CDMA for the deployment of its next-generation mobile
technologies. While the world market at present is dominated by GSM, most
carriers opt for W-CDMA as its successor, and this technology is being backed by
giants such as Ericsson and Nokia (NOK); Qualcomm would rather go for cdma2000.
Either way, the company stands to win because it is still an owner of several
key patents involving CDMA technologies.

By the middle of the next year cdma2000 phase one will be accomplished, making
it possible for the technology to be deployed in existing cdmaOne channels by
both cellular and personal communications services operators worldwide. The
increases in data rate, capacity and standby time will facilitate the migration
to more advanced services at a pace in tune with current market demand. The data
market is certainly emerging but operators probably do not yet require
full-blown 3G rates in excess of 300 Kbps. The devices and applications
requiring these speeds aren't going to be available in the next year or two, so
it would be an excessive deployment, taking resources away from services on the
2G platform. With cdma2000 phase one, operators already have a sort of blueprint
to add faster data rates when the time is right.

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