Great Wireless Standards Debate Rages On
By Dan McDonough, Jr., Wireless.NewsFactor.com
As Verizon Wireless inches toward a 3G (third generation) network rollout, the company is
narrowing its standards options.
• The Future of Wireless: 3G Fever
• Verizon Wireless Plans $300M Network Upgrade
• Vodafone Denies Plans To Gobble Up Verizon Wireless
Verizon Wireless spokesperson Nancy Stark told Wireless NewsFactor that the largest U.S.
carrier is likely to use WCDMA (news - web sites) (wideband code division multiple access),
which is compatible with the GSM (global system for mobile communications) standard used in
Europe and parts of Asia.
Verizon Wireless' network currently operates on the CDMA (news - web sites) (code division
multiple access) standard developed by Qualcomm Inc. (Nasdaq: QCOM - news).
Regardless of which technology Verizon Wireless chooses, a Qualcomm spokesperson told
Wireless NewsFactor that the patents belong to Qualcomm.
"Qualcomm will supply chipsets for either CDMA or WCDMA," said Qualcomm's Ann Stowe,
adding that the royalty rate on each is the same.
But any network upgrades could mean big bucks spent on new infrastructure -- especially
considering the investment Verizon Wireless already has on the table.
A Billion Here, A Billion There
In May, Verizon Wireless announced plans to spend more than US$300 million this year in the
New York metro region alone to enhance its digital wireless network. The company is using a
souped-up version of CDMA -- a natural path to WCDMA.
The company said the move is in response to strong demand for its wireless services and is
part of a $4 billion commitment to improve its networks across the United States in 2001.
That's right, $4 billion -- just to expand coverage and increase capacity in the company's
switching centers and cell sites.
Granted, part of Verizon Wireless' network improvements will include an upgrade to 3G-like
wireless technology, but the company said demand driven by high-value pricing and the
popularity of its mobile Web wireless Internet service are at the crux of its expansion decision.
If the company goes to WCDMA, it will be for its full 3G rollout, which Stark said will not occur
for "several years."
Battle of the Standards
Making a move to WCDMA is no small decision on the part of Verizon Wireless. Since WCDMA
is in fierce competition with rival technology EDGE (enhanced data rates for global evolution),
any move by the largest carrier in the United States will have a major impact on the Great
Standards Debate.
Interestingly enough, WCDMA already seems to have the edge.
A report unveiled in April by International Data Corp. (IDC) predicted that early interest in 3G
would focus on WCDMA rather than EDGE.
Why?
IDC said WCDMA is better suited to city areas where calls are expected to be at higher density.
EDGE technology, according to IDC, will be used later as 3G networks roll out to more urban
and country areas, where call densities are lower.
And although IDC's report focused mainly on European wireless markets, the 3G migration in
the United States will have a similar impact on standards choices.
Bedminster, New Jersey-based Verizon Wireless, with more than 27 million wireless voice and
data customers, was formed by the combination of the U.S. wireless businesses of Bell Atlantic
Corp. and GTE Corp. -- now Verizon Communications (NYSE: VZ - news) and Vodafone
(NYSE: VOD - news). |
