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Technology Stocks : Nokia (NOK)
NOK 6.775-3.6%3:59 PM EST

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To: Puck who wrote (14882)9/5/2001 9:47:52 AM
From: JohnG  Read Replies (1) of 34857
 
Will the QCOM MSM6000 multimode CDNA 1X/GSM/W-CDMA ASICS solve this incompatibility problem? Not every European will be traveling to US, Korea, Japan or China. Thus a small fraction of MSM6000 phones should solve this problem. It is a problem with GSM deployed and will be moreso if W-CDMA ecer deploys.

Vodaphone says suppliers have to offer integrated handsets.

What's the beef - Q has the 6000 chips on the way?

Wednesday September 5, 7:54 am Eastern Time
Vodafone asks suppliers to solve 3G standard clash
By Richard Baum, UK telecoms correspondent

LONDON, Sept 5 (Reuters) - Britain's Vodafone Group Plc (quote from Yahoo! UK & Ireland: VOD.L) has
given mobile phone makers struggling to develop handsets for next generation services a new headache: make
them work with both a European standard and an incompatible U.S. one.

--------------------------------------------------------------------------------

The world's biggest wireless operator has asked its suppliers to come up with network equipment and handsets
that will work with both the standard favoured by its U.S. joint venture Verizon Wireless and the one it is using in
the rest of the world, an industry source told Reuters on Wednesday.

The different standards threaten to deny Vodafone customers the possibility of using the same third-generation
(3G) handset anywhere in the world, and have led analysts to question whether Vodafone will retain its 45 percent
stake in Verizon.

Vodafone plans to build 3G networks in Europe and Asia using a standard called W-CDMA, which is backed by
most network suppliers.

But Verizon, 55 percent owned by local U.S. phone company Verizon Communications (NYSE:VZ - news), is
upgrading its network with interim technologies compatible with CDMA 2000, supplied by U.S. equipment maker
Qualcomm (NasdaqNM:QCOM - news).

Vodafone would not comment on whether it has asked suppliers to develop dual-standard equipment, but the
industry source confirmed the company had disclosed the plan at an analysts' lunch on Tuesday.

BNP Paribas analyst Emmet Kelly said Vodafone was discussing the issue with Qualcomm and another U.S.
supplier, Lucent Technologies Inc (NYSE:LU - news). But he doubted the companies could find a way around
the problem.

``These equipment manufacturers are having enough problems getting 3G working,'' he said.

Most handset makers are struggling to make 3G devices that can cope with high-speed Internet access and the
download and transmission of music, videos and photographs. Handsets are not expected in volume until 2003,
the year after the service is due to launch in most countries.

Kelly said it would be at least 2004 before handsets compatible with both 3G standards were available, and even
then the cost of the phones and network equipment might be prohibitively expensive.

He believes Vodafone will instead sell its investment in Verizon -- at a considerable loss because of the slump in
telecoms valuations -- and find a different U.S. partner with compatible technology.

``It's very likely they'll have to exit Verizon,'' he said.
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