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Technology Stocks : Nokia (NOK)
NOK 5.935+1.1%Nov 21 9:30 AM EST
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To: Quincy who wrote (1723)4/7/1999 5:40:00 AM
From: Mika Kukkanen  Read Replies (2) of 34857
 
Just want to point out a 3G misconception

The biggest misconception is that with WCDMA the installed GSM infrastructure (all or part of) will be replaced. In nearly every part of the world, the biggest exception is the USA, will have new radio spectrum for 3G. This fact will mean that the GSM system will remain in place along side WCDMA...this should provide higher capacity (total subs 2G plus 3G) for an operator than a US cdma operator upgrading to 3G within exsisting spectrum.

To say that cdmaOne cuts a phone bill in half is ridiculous, it is the operator that decides the cost. The fact that a technology can be or is more efficient does have an affect, but the simple truth is that it is not half the cost. We also have to remind ourselves of the operators' business case and the 80/20 rule (you know the one: 20% of the subs pay 80% of the revenue). For the majority, consumers look purely at the price (not the technology), but the mass consumer may not be the main market. These things have to be taken into the whole equation and not to take too much a simplistic view.

As for capacity restrictions of GSM, it is a problem of its own success. Nokia's solution is the reason why it is winning all the upgrade deals of late...the solution is of course more expensive, but in the long term cost drops to near zero and you end up with a far superior system. I just wish that ericsson's solutions was better so that it could compete with Nokia.

Mika
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