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Technology Stocks : NEXTEL
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To: Paul Smith who wrote (9734)3/25/2001 1:06:30 PM
From: Bux   of 10227
 
iDEN lacks the capacity of CDMA amongst other things. The cost to upgrade to CDMA will entail creating a whole new network in separate frequency bands. The locations of Nextel's existing base stations are probably not ideally chosen for the slightly different propagation characteristics of CDMA but will probably be used anyway because of the high expense of acquiring new locations. I can't even guess what the cost will be in actual dollars.

Of course Nextel doesn't have much of a choice, do they? W-CDMA isn't ready and due to IPR issues and handset complexity will cost considerably more than 1X and won't allow the graceful transition from iDEN to CDMA within Nextel's existing spectrum. Besides, WCDMA offers no capacity or speed advantages over the CDMA2000 family of technologies. GSM is a dead end even with the over-hyped EDGE "upgrade".

Bux
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