re: More on VOD & VZ 3G Migration Plans
>> Game Of 3G Roulette
Deborah Méndez-Wilson
Wireless Week
April 2, 2001
Will Carriers Bet On Different Migration Paths?
Verizon Wireless downplayed reports on both sides of the Atlantic that it and Vodafone Group plc, which owns a major stake in the U.S. carrier, are feuding over third-generation migration paths.
Despite reports of infighting and stories of attempts by Vodafone to take over Verizon, the carriers closed ranks late last week to quash the rumors.
The U.K.-based Vodafone, the largest mobile operator in the world, owns a 45 percent stake in Verizon Wireless, a joint venture with Verizon Communications. Last October, Verizon's wireless unit postponed a planned initial public offering, citing market conditions, and remains in a quiet period.
Reports that Vodafone is unhappy over Verizon's decision to implement cdma2000 technology instead of wideband-CDMA forced both sides to present a united front.
'Vodafone has been very supportive of Verizon Wireless' evolution plan,' says Verizon spokeswoman Andrea Linskey, attempting to smooth over perceptions that the carriers were placing separate bets on the success of one migration path over another.
A Vodafone spokesman pointed out that Verizon does not have to make a final 3G decision for another 12 to 24 months. 'By then, there will be more clarity in products and on what supplies are doing,' he says, speaking on condition of anonymity.
He would not comment on speculation that Vodafone is trying to gain a larger stake in Verizon or that it could sell off its current stake. In a press release issued last week, Vodafone Group CEO Chris Gent said the carriers are working together to develop Verizon Wireless, the largest U.S. wireless carrier with more than 27 million voice and data subscribers.
'The choice of any future technology will be made in the interest of both parties and with full awareness of the evolving technology trends in our industry,' he added.
Vodafone, like other European carriers, is deploying wideband-CDMA, a GSM 3G technology also known as Universal Mobile Telecommunications System, or UMTS. European wireless carriers have invested tens of billions of dollars in 3G spectrum and infrastructure in hopes of introducing a new generation of high-speed mobile device features that include streaming video, rich graphics and location-based services. Naturally, a new, more expensive generation of handsets goes along with those plans.
According to recent press reports, Vodafone apparently is concerned its customers would be unable to use their mobile phones in the United States if Verizon continues on its cdma2000 path. Verizon has said the technology is the most cost-effective and least painful way to build 3G capabilities into its network.
With that in mind, the carrier recently announced a $5 billion deal with Lucent to deploy the first phase of cdma2000 technology, 1XRTT.
Linskey said Vodafone representatives on Verizon's board signed off on the Lucent deal, an apparent inference that all are happy with Verizon's migration path.
Verizon and Sprint PCS, which also plans to use cdma2000, have both said they will have 3G technology in place by the end of the year. Some observers believe Verizon risks losing customers to Sprint PCS if it does not move forward as planned. By comparison, AT&T Wireless-whose international investor NTT DoCoMo has a 16 percent stake in the carrier-is overlaying GSM technology on its TDMA network.
AT&T Wireless' 3G migration is expected to entail a jump to 2.5G technologies and then UMTS. The carrier claims the route will be slower but will ultimately guarantee 'true 3G' capabilities. 'We are traveling the high road by not overhyping our services in the marketplace,' an AT&T Wireless spokesman says.
Representatives for both Verizon and Vodafone agree that the implementation of 1XRTT would not prohibit Verizon from changing its 3G tack in the future. Currently, Verizon cannot implement UMTS technology because the FCC has not freed up the spectrum that would make such a move feasible. 'This is not a path that we can't veer from if we decide to go with W-CDMA in the future,' Linskey says.
Meanwhile, analysts say that emerging solutions, such as Qualcomm's multimode CDMA chips or a 4G technology, could soon calm incompatibility concerns.
Jane Zweig, CEO of the Shosteck Group, says Verizon is right in protecting its interests. By implementing 1XRTT, the carrier should be able to offer higher data speeds on existing spectrum. 'For the next three to four years at a minimum, they have a good course of technology,' she says.
If her predictions pan out, it could mean one less feud in the war of words over 3G. <<
- Eric - |
