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Technology Stocks : Nokia (NOK)
NOK 6.730-0.7%Nov 14 9:30 AM EST
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To: Claude who wrote (19328)4/3/2002 6:38:21 PM
From: JohnG  Read Replies (1) of 34857
 
Claude. So true. Broadly speaking, avg throughput determines the quality of the user experience AND capacity determines whether the carrier will make a profit providing customers with a satisfactory experience. GPRS and EDGE may uptimately provide users with a successful broadband experience while FAILING to succeed due to having very low total data capacity. A tower in a given cellular layout may successfully supply 10 broadband customers with a successful experience before seing a breakdown in performance whereas, a 1XEV RTT tower might supply 50 users with a satisfactory broadband experience. Clearly, in such acompetative environment, the CDMA operatou could charge maybe 1/5 the price for the same service.

Seeing this problem, Voicestream is moving to supplement GPRS with 802.11b wireless in high density fixed locations. Voicestream has a contract with Starbucks to install 802.11b ---thus increasing their capacity on the cheap. However Boingo has positioned itself as a national source for affiliated independant 802.11b installations -- and as such will provide 802.11b high speed wireless to CDMA customers, GPRS customers, and any one willng to purchase their service.

Clearly, the CDMA crowd still hold the economic high ground in this environment, but the Voicestream crowd can extend their network on the cheap.
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