Cdma Will Rule The Roost>
3/26/99 - CDMA Will Rule The 3G Roost - Datacomm Research
CHESTERFIELD, MISSOURI, U.S.A., 1999 MAR 26 (Newsbytes) -- By Sylvia Dennis, Newsbytes. Yesterday"s announcement by
Ericsson [NASDAQ:ERICY] and Qualcomm [NASDAQ:QCOM] of the settlement of their long-running third generation (3G) wireless
feud has been hailed as confirming Datacomm Research"s prediction that CDMA (code division multiple access) wireless
technology will rule the roost.
According to the research firm, the settlement between the two telecommunications companies paves the way for the open
development of 3G wireless technologies within a relatively short timeframe.
Perhaps more revealingly, the Chesterfield, Mo.-based firm says the move means that Ericsson believes CDMA is vital to its ongoing
business success.
Ira Brodsky of Datacomm Research, which published the "CDMA Wireless Business Opportunities" report, said the company was
the first research firm in the US telecommunications industry to predict that CDMA would drive the expansion of wireless
applications and markets.
Brodsky said Ericsson"s planned purchase of Qualcomm"s CDMA infrastructure business, plus the resolution of all intellectual
property right (IPR) disputes, clears the way for Ericsson"s participation in both current (cdmaOne) and future (third-generation)
CDMA markets.
The deal, which Brodsky says would have been unthinkable just a few short years ago, makes excellent business sense for both
Ericsson and Qualcomm.
The implications, the firm says, are far-reaching, since the deal effectively catapults Ericsson to the forefront of wireless
infrastructure manufacturers.
As reported yesterday by Newsbytes, the deal also gives the Swedish firm access to important new markets in Japan, Korea, and
the Americas. The deal positions also Qualcomm to concentrate on becoming the Intel of the digital wireless telephone market -- a
market that rivals the PC industry in annual unit volumes.
Datacomm Research the need for third-generation wireless systems is as certain as the need for next-generation microprocessors,
contrary to what some pundits have been saying.
Despite what some pundits have been saying, wireless networks are not about to replace wired networks but they will increasingly
compete with them, Datacomm Research said. CDMA, the firm says, is the best technology for delivering the capacity and
seamless, end-to-end digital services required by the market.
Brodsky says that wireless networks will play a major role in extending the Internet, intranets, and extranets to everywhere
information is needed and transactions are conducted.
The firm"s $1,450 report predicts that wireless Internet access will become a major factor in electronic commerce. The total
e-commerce market will rapidly grow, the report says, to $1 trillion in just a few years time.
Datacomm Research"s Web site is at datacommresearch.com .
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