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Technology Stocks : Nokia (NOK)

NOK 6.550

-0.9%

Jan 16 9:30 AM EST

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To: Eric L who wrote (19027)	3/18/2002 8:03:40 PM
From: Scott Zion	Read Replies (2) of 34857

CARRIERS LEARN TO LIVE WITH CAPACITY CRUNCH ---snip--- The capacity issue is perhaps most critical to Cingular Wireless, which has been under fire of late for its decision to overlay GSM/GPRS technology on its existing TDMA network. Critics claim GSM fundamentally provides less capacity than Cingular's existing TDMA networks. TDMA technology has an inherent capacity advantage over GSM technology, but Cingular Chief Technology Officer Bill Clift says vendors have committed to providing Cingular with a flavor of GSM that adds capacity three to four times that of TDMA. Capacity enhancements will become an increasingly important element to all GSM operators building out GPRS networks because carriers are required to set aside voice channels in order to offer data services. "Those are contractual commitments to us with really significant penalties," Clift said. "The more efficiently we use the spectrum, the more we have available for data. It's going to be an aberration as it consumes spectrum, and none of us knows how fast this will happen." wirelessweek.com

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