Tim.A, Check This Out>
Buyout May Affect 3G Outcome
By Caron Carlson
WASHINGTON--A combination of global wireless carriers Vodafone Group plc and Air Touch Communications
Inc.operators that fall almost squarely in rival technology campsis sure to affect third-generation wireless, if not in the short
term then certainly in the long term.
Carriers have emerged from the sidelines in the 3G debate and increasingly are making their voices heard. At a meeting in
Beijing hosted by China Telecom earlier this month, operators of rival technologies considered a proposal for a universal
umbrella standard which could fall under the nomenclature of "one global standard"that includes more than one of the hotly
contested air-interface technologies. The Beijing proposal resembles the "family of standards" notion sanctioned last summer by
the International Telecommunication Union.
Vodafone operates global system for mobile communications networks in Europe and has conducted code division multiple
access technology trials in other regions. AirTouch operates CDMA networks in South Korea and the United States and GSM
networks elsewhere around the world. A member of the CDMA Development Group, AirTouch has been vocal in promoting
harmonization of the CDMA-based and GSM-based 3G technologies under consideration at the ITU.
However, sources privy to the Beijing meeting said AirTouch and other CDMA operators may join a group of carriers settling
for more than one air-interface technology within a family of standards. A contingent of car-riers seeking global roaming
capability, including time division multiple access technology operators, are leaning toward achieving global coverage through
separate, but interoperable, standards, sources said.
Several major manufacturers have touted the capability of global roaming via multi-mode handsets. Motorola Inc. and Nokia
Corp. released a paper last year asserting that the added expense of including standards for CDMA-based and GSM-based
technologies in a single handset would be insignificant. For AirTouch to support this concept, the chip rates of the competing
technologies must be closer than they are today, a source at the company said, adding that the carrier would remain an
advocate of convergence, but perhaps not of full convergence into a single standard. Vodafone worked with Qualcomm Inc.
several years ago to develop a hybrid GSM-CDMA system.
CDG does not see the planned merger as weakening its position on harmonization. "Vodafone has been very CDMA friendly
over the years," said Perry LaForge, CDG chairman.
The group also is lobbying hard against Europe's resistance to promote harmonization. LaForge said AirTouch likely will be
sensitive toward Vodafone's need to comply with Europe's position to procure 3G licenses, but the merger will not diminish the
CDMA camp's cause. "There will be winners and losers in the 3G licensing process, and the carriers that don't get spectrum
will still have to find a way to upgrade their 2G systems," he said. "Operators will have to come in and overlay [cdma2000] on
existing GSM systems. We think it will be a good growth path."
The Universal Wireless Communications Consortium, TDMA advocates, have long supported the family of standards concept.
UWCC Chairman Gregory Williams said the planned Vodafone AirTouch merger would likely have a positive impact on the
3G debate. "These mergers cause carriers to develop a pragmatic approach," he said. "We're all looking for backward
compatibility for all of our customers."
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