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Technology Stocks : Nokia (NOK)

NOK 6.775

-3.6%

3:59 PM EST

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To: Eric L who wrote (19406)	4/8/2002 3:26:17 PM
From: JohnG	Read Replies (4) of 34857

"Cingular's Little Enron Secret" and Edge's big problem from V Hurta on RTTS thread This is exactly what Dr. J. said back in November. Unless, there are lots more base stations and towers, EDGE doesn't deliver 3G speeds. The spin has been suggested at SI that there are presently no European EDGE contracts because Europe will go directly to 3G. Therefore, there is no need for EDGE in Europe. I think otherwise. The base station and extra infra expense is not something that the cash-strapped European carriers can afford. EDGE coverage is another big problem that they don't talk about. When EDGE is installed in a GSM voice cell site it will cover only about half of the area as the GSM voice system. This means Cingular will need to install three to four times more cell sites in most of the network to support EDGE data (in dense metro cores there are additional cell sites already in place to provide voice capacity so extra EDGE sites may not be needed in downtown areas). The cost to provide EDGE data coverage outside of the metro cores is substantial. It seems to me that this is Cingular's "little Enron secret".

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