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Technology Stocks : Nokia (NOK)
NOK 6.730-0.7%Nov 14 9:30 AM EST
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To: brian h who wrote (1626)3/22/1999 9:56:00 AM
From: tero kuittinen  Read Replies (1) of 34857
 

China most definitely should be open to different standards. But people should not expect Chinese operators to invest literally billions of dollars in CDMA equipment if they do not want to do so. "Open markets" is not the same thing as "let's force the Chinese to pour billions of dollars into CDMA".

If American companies want to invest billions in building Chinese CDMA networks, I think they should be allowed to do so. But demanding a massive pay-off to US companies from China in exchange of a WTO membership is not my idea of free competition. On purely commercial basis, I doubt that any operator would be willing to invest in CDMA networks in China. The subscriber base of 20 million that GSM has in China means that IS-95 would be at a considerable disadvantage.

I'd like to point out that any major operator was free to enter a substantial CDMA2000 proposal for the Finnish 3G bidding competition. Nobody wanted to do that. When England opens bidding for 3G licenses this year it's possible that all the licenses will go to W-CDMA once again. Is this unfair? No - anyone can scrape up a billion or so and start up a CDMA2000 network in England or Finland. If operators do not think that this is a commercially viable option, should governments force them to cough up the money?

Tero

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