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To: cuemaster who wrote (96679)4/3/2001 1:42:07 PM
From: JohnG  Read Replies (2) | Respond to of 152472
 
CDMA 1X Trial Goes Ahead In Russia

The NMT-450 operator Moscow Cellular Communications (MCC) received permission at the beginning of March
2001 from the State Committee for Radio Frequencies to conduct a trial IMT-MC (1x) in the Moscow area. The
network will operate in the frequency range 453-457.5MHz and 463-467.5MHz. The trial is to take place in Q2-Q3
2001.

Plans make provision for the full development of a switching centre and up to 25 base stations supplied by Lucent
Technologies. The work will include tests on electromagnetic compatibility, network configuration and the testing
of new services including packet transfer of data at speeds up to 144Kbps. The trial is expected to be concluded by
the end of 2001 with commercial deployment anticipated after the trial.The handsets are to be provided by the
South Korean company Hyundai. Lucent has stated that it has no plans to conduct additional trials of this technology
with other Russian operators.

The move marks what some observers are calling the second attempt by MCC to transfer its network to a digital
standard. MCC, which currently has around 100,000 subscribers, first launched plans to build a digital network in
May 2000 based on the GSM-400 standard but had to abandon the project when Ericsson, who were to supply
infrastructure, withdrew , . Nokia, who had plans to manufacture GSM-400 handsets has also put these plans on
hold, focusing instead on possible developments using EDGE at 400MHz .

Urgent Need For A Digital Solution if MCC to Compete

The growth of MCC's subscriber base has been slowing due to a consumer preference for its competitors' digital
technologies over NMT-450. The growth of GSM within the last year, and in particular increased roaming
opportunities on GSM networks within Russia, have effectively sealed the fate of NMT. NMT networks had held
their own in Russia's provinces by maintaining the most comprehensive domestic roaming network, branded
SOTEL.

Competitors Not Worried

Press reports suggest that MCC's competitors are reacting calmly to the initiative. The president of MTS
commented that the construction of a new network required time which in the highly competitve Moscow market is
a valuable commodity. 'We will watch their actions but we scarcely think that they will become serious rivals' he
said. In the opinion of 'Vimpelcom''s press secretary MCC faced a complex task - managing a new technology in
market crowded with competitors and crowded airwaves.

The Answer to MCC's Problems?

In June 2000 The Ministry of Communications issued Edict No 110 which asked operators to determine the
effectiveness of using the 400MHz band for a path to 3G. Two possible standards were examined - GSM and
CDMA. After Ericsson's refusal to develop the GSM-400 equipment the go ahead was given to CDMA.
Restrictions which limit the mobility of CDMA One (IS-95A) networks in Russia have clearly not been applied to
this use of CDMA technology under the family of IMT-MC (3G - cdma2000).

Whilst engineers in the Russian NMT networks have privately expressed their attraction to a CDMA solution other
factors have been at play. The GSM lobby has been strong within the communications authorities in Russia, not to
mention the largest companies. Nevertheless the key benefit for MCC is that CDMA can be deployed on its current
frequency allocation - and it can provide data transfer provision deemed a 'must have' by all operators in the future.

First MCC, then Russia?

If MCC makes a success of the CDMA-450 standard it seems likely that other operators in the SOTEL network
across Russia would follow suit.