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Technology Stocks : Nokia (NOK)
NOK 6.515-1.0%Jan 13 3:59 PM EST

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To: Nils Mork-Ulnes who started this subject4/23/2001 1:33:28 PM
From: Ruffian  Read Replies (1) of 34857
 
NEW Zealand says, "GPRS SUCKS."
Telecom's network may pip
Vodafone
23 April 2001

(from SI)

By HEATHER WRIGHT
Handset shortages have stymied cellular operator
Vodafone's high-speed data network launch but Telecom
is adamant it remains on track for a "mid-year" launch of
its competing service.

Telecom is embarking on a national five-week trial of its
multimillion-dollar CDMAOne competing network with 2000
people which will begin in late May. It refuses to say exactly
when its next-generation network will launch, but says it does not
anticipate handset supply problems.

Vodafone spokeswoman Alison Sykora says its advanced
second-generation GPRS network, an overlay which allows data
to be transferred across Vodafone's existing GSM cellphone
network, was due to launch early this year, but handset
shortages have delayed it.

She is unable to say when the network was likely to launch.

Vodafone's network had been expected to beat Telecom's
next-generation CDMA network.

Telecom has been trialling its service in Wellington and Hamilton.

The 2000 customers in the new trial have been chosen for their
usage patterns, geographic locations, whether they're business or
consumer users and pre-pay or post-pay.

None of the major mobile phone players in New Zealand – Nokia,
Motorola, Alcatel and Ericsson – are among Telecom's handset
line-up at launch.

Instead, it will launch with four models from the lesser known
brands Samsung, Kyocera and Hyundai.

Gary O'Neil, Telecom's CDMA communications manager, says
Telecom is talking to other manufacturers, though he declines to
name any.

He does not expect handset supply problems, saying there are
more than 30 manufacturers Telecom can call on.

The launch of a large CDMA network in China is driving demand
for handsets, he says, though he acknowledges lack of brand
recognition may provide some difficulties.

There are 84 million CDMA subscribers worldwide. The service is
not readily available in Europe, where competing GSM technology
is dominant, and where many of the mobile handset suppliers are
based. GPRS is under development around the world, but there
are few networks up and running, causing handset supply
problems.

Telecom has signed CDMA roaming agreements for Australia,
Hong Kong, the United States and Canada.

Handset supplier Nokia New Zealand says it has no plans to bring
CDMA phones to this market in 2001, despite having phones
available overseas. Telecom's Mr O'Neil says Telecom is in
discussions with Nokia Corporation in Finland. GPRS phones for
Vodafone will not be supplied by Nokia in New Zealand till at least
September.

Alcatel does not support CDMA, but does support GPRS, while
Ericsson is due to launch a CDMA phone later this year. Ericsson
also has a couple of GPRS models. Motorola plans to launch a
CDMA phone late in the year, once Telecom has added a further
upgrade to the network, due for November.

That upgrade will see increased data speed of up to 144 kilobits a
second. The original CDMA network will have speeds of
14.4kbits/sec, up from 9.6kbits/sec achieved on the current
network.

Mr O'Neil says the enhancement is "more about devices" such as
Palm Pilots, connecting to the network, rather than mobile
phones.

He says 14.4kbits/sec will be fine for mobile phones using
Internet protocol Wap and downloading text.

CDMA will initially target the business market.

"It's the top end of the market that will see the applications.

"But the mass market will be able to get CDMA phones."

Telecom expects to launch CDMA services to match all of the
services it has on its existing network plus the enhanced services
available over Wap.

The first application will be e-mail, allowing customers to get
e-mail alerts via the phone.
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