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Technology Stocks : QUALCOMM-The Wireless Wonder in 1999 -- Ignore unavailable to you. Want to Upgrade?

To: GO*QCOM who wrote (271)	5/24/2000 1:56:00 AM
From: GO*QCOM	Respond to of 343

TDMA vs CDMA Part 3:Call Quality As evidenced by Bell Mobility's experience with TDMA, in the eyes of the customer the most significant criteria in selecting a new digital technology is the resulting voice quality. In this area, CDMA truly excels by employing numerous technical advancements to provide a voice quality that is as good as or better than that produced by AMPS, and is significantly better than that of TDMA. Two technical features that allow for the superior voice quality are discussed below. High quality 13 Kb voice coder: The TDMA channel structure allows no more than an 8 Kb voice coder and is planned to evolve to a 4 Kb coder. The CDMA structure uses 13 Kb in the near term providing the best quality at launch and an improved 8 Kb coder is now available for implementation. Soft handoff: TDMA employs a hard handoff when moving between cell sites, resulting in a noticeable mute on the call. This mute can be significant in cities such as Toronto or Montreal, where handoffs will occur 2-4 times per minute. CDMA, on the other hand, uses a technique known as soft handoff to eliminate this problem. Soft handoff allows the phone to receive signals from 3-5 adjacent cell sites at the same time, and combines the signals to eliminate the handoff muting as well as improving overall signal quality (by always selecting the best signal of the 3-5 that are received). Network Capacity The capacity considerations for the digital technology were very important in order to minimize the need to evolve the network in a significant way in the near future. At issue were several items: customer annoyance at yet another change, the company's desire not to have to invest additional capital in another network as well as the need to support the fast growing traffic load on the network. CDMA capacity has been a much-debated item in the industry and was the subject of significant scrutiny by Bell Mobility. At the end of the day, Bell Mobility believed that even the most conservative views of CDMA capacity were that it offered at least double that of TDMA. Further, even assuming that conservative view, Bell Mobility could meet its capacity requirements for the foreseeable future, as can be seen in the following chart:

To: GO*QCOM who wrote (271)	5/24/2000 1:58:00 AM
From: GO*QCOM	Read Replies (1) \| Respond to of 343

TDMA vs CDMA Part 4:CDMA achieves this capacity advantage by employing the following techniques: Variable rate voice coders reduce the rate being transmitted when the speaker is not talking. This technique allows the channel to be packed more efficiently, resulting in additional capacity. Power control techniques are used to keep the transmitted power at the absolute minimum required to support a high quality call. The relationship to capacity is as follows: Less Power = Less Energy = Less Interference = Greater Capacity Expansive Footprint CDMA has been selected as the second generation digital technology of choice by more than half of the North American industry with the remainder of the industry split across two other digital technologies: TDMA and GSM. Bell Mobility therefore believed that the best way to meet the needs of its customers, who use their service in all of Canada and in the United States, was to select a technology that was more broadly deployed than the other alternative digital technologies. Cost Effective In evaluating the cost structure of TDMA versus CDMA, Bell Mobility concluded that CDMA was a more cost effective solution in the long run. This cost benefit is realized largely due to two factors: Capacity gains: Higher capacity per site means that fewer sites need to be deployed to meet a given traffic demand. Coverage efficiencies: The coverage generated by CDMA technology is better than that of AMPS or TDMA (by 3-6 dB). Better coverage means better quality and fewer sites required to provide service outside the major urban centers. Third Generation Technology of Choice AMPS analog systems are referred to as first generation wireless technology and digital systems such as CDMA, TDMA and GSM are referred to as second generation. The world is currently working on third generation systems to deliver enhanced data service support early in the next decade. Regardless of whether these third generation systems are deployed in the near term or as part of a long range plan, it is important to consider this next technology evolution when selecting the current one. This type of technology planning ensures a graceful and cost effective migration when the market does require the introduction of advanced services and features. As Bell Mobility was evaluating its second generation options, TDMA and CDMA, it believed that CDMA would likely be the basis of third generation systems given its inherent technical capabilities to support enhanced capacity and data services, two key elements of third generation wireless. Today most of the world has agreed that third generation systems will be based on CDMA, and therefore Bell Mobility's belief that its second generation CDMA solution offered the most 'future proof' alternative has been proven true. CDMA's Promise Fulfilled Bell Mobility's CDMA system has been in operation for nearly two years and the advantages expected for the company and its customers have been realized. As the technology continues to evolve to meet emerging market demands it is expected to continue fulfilling its promise long into the next generation About the Author Brian O'Shaughnessy is Vice President, Technology Development for Bell Mobility and the President of the CDMA Development Group. The Bell Mobility family of companies provides a complete range of wireless communications solutions - cellular, 1- and 2-way paging, data, satellite, PCS and airline passenger communications services -to over 2 million Canadian customers. The CDMA Development Group is a non-profit trade association formed to foster the worldwide development, implementation and use of CDMA technology. --------------------------------------------------------------------------------