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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 147.19-3.6%Feb 3 3:59 PM EST
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To: Raymond who wrote (17473)10/31/1998 1:14:00 PM
From: Clarksterh  Read Replies (1) of 152472
 
Raymond - Everytime you have to think about backwardcompability you will not get the most optimal system.

It depends on the metric. If the metric is, as it should be, total system upgrade cost and operation, this isn't always true. Backward compatibility can save a lot of money.

If, on the other hand the metric is spectral efficiency etc., you are probably correct. But just as CDMA-2000 is constrained by backwards compatibility, so W-CDMA is constrained by their desire to avoid as many of Qualcomm's patents as possible. Which of the two systems turns out to be more efficient by this metric is something I do not really know, but I tend to trust Qualcomm more than Ericsson. And at least in some areas (like synchronization) it makes sense that Qualcomm should be more efficient.

They [Qualcomm] should be happy seeing the competitors including their enemy Ericsson going in the wrong direction.I mean as anyone reading this thread knows.Ericsson started with CDMA a short time ago.They can't have learned anything during that time can they?

And Qualcomm would be even happier to have a converged standard such that until it comes out they [Qualcomm] could say 'Buy our IS-95 equipment now and we'll upgrade it cheaply to the 3g standard when it is out of trials.' If there are two 3g standards with close to the same performance, one of which is backed by some very big names, much of this advantage disappears. This would not be the end of Qualcomm, but it definitely is a much less positive scenario than a converged standard. Thus the fight.

Clark
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