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To: Eric L who wrote (8854)	1/17/2001 2:19:19 PM
From: Maurice Winn	Respond to of 34857

< what fraction of the total cost of a system is the air interface electronic gizzardry? > Thanks Eric L! "Lucent expects operators to spend around 45 percent of their UMTS investment on UTRAN radio systems, 20 percent on equipment and base stations and 20 percent on core networks." Message 15196176 You also said "My guess is that the air interface components are about 70% of the cost of a base station's electronics." > 69% is very close to 70%. I suppose they didn't include the housing cover screws, which I did in my calculations, hence the difference. So, if 70% of the value is in the air interface, the GSM core network is a small part. But I suppose calling it 3GSM maintains the pretence that it's a GSM system. With royalties of 15% for the W-CDMA type and 5% for the cdma2000 type, it is going to be a stretch to pretend it's more economic to go with W-CDMA. It's interesting that people are 'ordering' W-CDMA systems when they don't know what they will cost since the royalties have not been set. Perhaps it's all vendor-financed with performance guarantees and payment as a percentage of the throughput with a minimum, so the service providers only have to estimate how much they can sell and the system operation isn't their problem. 5% of 70% of a cdma2000 system is going to be quite a lot less than 10% [or 15%] of 70% of the W-CDMA system, which won't work as well as the cdma2000 system and will be a year or two later as well. That GSM core network must be really cheap stuff. I smell a rat. Mqurice