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Technology Stocks : Ericsson overlook?
ERIC 9.725-0.2%Nov 7 9:30 AM EST
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To: P2V who wrote (2776)2/12/1999 3:44:00 AM
From: Clarksterh  Read Replies (2) of 5390
 
Marden - What is so absolutely sacred about QCOM's Chip Rate ??

Simple. Backwards compatibility (although they have agreed to give it up if there are significant performance advantages in a different system) They have two goals here:

1) The altruistic goal of not leaving their old customers in the lurch.

2) The ability to sell CDMAOne systems now and say that they can be cheaply upgraded to 3g.

The bigger question is what is so sacred about Ericsson's chip rate since they do not have the issue of backward compatibility. And in fact NTT has said that the Qualcomm chip rate is acceptable.

Clark

PS Ask yourself a question: If the Ericsson chip rate provided 1% extra Mbps/MHz, is that enough for Qualcomm to justify ripping out all the CDMAOne equipment in the world? Where did this trade occur? (10%, 1%, 0.1%, 0.01%, ...?) And that is assuming that the problem is that simple. The reality is that by going with a higher chip rate you probably have to have more filters and better amps both of which eat power and in addition the filters will probably degrade your signal. Basically the performance of the system is somewhat subjective and somewhat uncertain but the difference in chip rates probably results in performance differences that are in the noise. Thus Qualcomm has a concrete reason for their request, Ericsson does not.
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