To: Boplicity who wrote (2839 ) 7/9/2000 1:32:24 AM From: r.edwards Read Replies (3) | Respond to of 13572 Myths&the facts chip rate wcdma,Qcom going back to $200<gcellular.co.za QCOM will move from 20%Mkt share of cellular to 85+% If the world goes cdma or wcdma as China and Korea plan . QCOM will be $200 by year end !!!!!! =two major pieces of information that anyone who is in this stock (long or short) should know vis-a-vis QCOM and W-CDMA. 1.)- Intellectual Property Portfolio - QCOM's Patents relevant to W-CDMA are some 100+ strong...in all likelihood this mean huge royalties and licenses will have to be paid to QCOM for W-CDMA...many of the current licensing agreements provide for royalties paid to QCOM for 3G derivatives of CDMA (W-CDMA etc.) Earlier this year, QCOM's KOREAN patents won an overwhelming victory in a challenge from Motorola:qualcomm.com 2.)- QCOM will be major supplier of W-CDMA chips - QCOM, leveraging it's substantial lead time in CDMA based engineering, has been developing it's MSM5200 line of W-CDMA (3g) chipsets for some time and will likely be one of the leading, if not THE leading chip set supplier for W-CDMA:ebnews.com Soon enough it will become apparent to the masses that they have severely misunderstood the strength of QCOM's position in the global wireless market. The myths and the facts about chip rate The debate about cdma2000 and WCDMA convergence has been based on the fact that these CDMA-based proposals have certain parameter definitions that present an opportunity for compromise. The most discussed and debated parameter is the system chip rate. WCDMA uses a chip rate value of 4.096 Mbps. cdma200 uses 3.6864 Mbps. WCDMA proponents liken the higher rate to more horse power and claim the lower cdma2000 rate degrades performance. This falsity requires clarification. Deployment scenarios in various bands First, WCDMA proponents claim that the WCDMA chip rate provides as much as a 10% capacity improvement over that of cdma2000. This should be examined under a realistic scenario of how the technology will be deployed, and must include all factors affecting system performance. While some operators will deploy 3G in as little as 5 MHz of spectrum many will use allocations of 10, 15, or 20 MHz. This is important since it is the usable spectrum, in conjunction with chip rate, which affects capacity. Figures 1-3 illustrate the deployment scenarios for cdma2000 and WCDMA in 10, 15, and 20 MHz bands respectively. Even with the required guard bands as verified in today’s operational cdmaOne systems, greater overall capacity is achieved with a mixture of cdma2000 1X and 3X channels as compared with using WCDMA channels. With that configuration it can be shown that up to 13% capacity improvement is achievable in a 20 MHz deployment ( 1 ).. Figure 1 Deployment scenario for cdma2000 and WCDMA in a 2x 10 MHz operation....... Figure 2. Deployment scenario for cdma2000 and WCDMA in a 2x 15 MHz operation Figure 3. Deployment scenario for cdma2000 and WCDMA in a 2x 20 MHz operation Examining chip rate in context with other characteristics Second, chip rate alone does not determine overall system capacity. To build on the automobile analogy referenced earlier, assuming chip rate is the only factor affecting capacity is like assuming tire pressure is the only thing affecting gas mileage. One of the main parameters in determining the capacity of a CDMA system is the ratio of energy per information bit to noise power spectrum density (Eb/No) required to achieve certain QoS (Quality