Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: 49thMIMOMander who wrote (12166)	6/4/2001 3:47:54 PM
From: S100	Read Replies (1) \| Respond to of 34857

High Stakes 3G Nextel bets on compression technology to stay competitive in 3G race By Jeanie Stokes from the June 4, 2001 issue of Broadband Week Nextel Communications, the U.S. wireless phone company that incorporates two-way radio features with its services, hasn't made up its mind about broadband mobile wireless technology. But it's definitely in the mood to shop. While it's doing so, Nextel also has some interim plans to speed up its all-packet data network until it decides which third generation wireless solution it will pursue. The Reston, Va.-based company last month issued a request for proposal for equipment that would be used to deploy 3G services based on the 1xRT code division multiple access (CDMA) platform. To migrate services to the next generation technology Nextel will have to build an overlay to its existing integrated digital enhanced network (iDEN), which has its technical roots in the time division multiple access scheme. The company's been conducting technical trials of 1xRT for several months but hasn't yet indicated whether it will proceed with a CDMA overlay. "1xRT is the (3G technology) that's presented itself as the most logical direction, although I would emphasize that no final decision has been made. No timetables have been set. No equipment has been ordered," says spokeswoman Audrey Schafer. "The RFP is part of the evaluation process of that technology. It allows us to ferret out what it would take to make the handsets, the cost and all that goes into a decision about whether to go forward with 3G." Nextel's RFP to Qualcomm Inc., the leading developer of CDMA technology, is focused on receiving assurance that CDMA 1xRT can support Nextel's Direct Connect two-way radio functionality, according to W.R. Hambrecht & Co. analyst Peter Friedland. Direct Connect is Nextel's trademark feature, enabling its handsets to have a walkie talkie-like functionality that allows users to speak with others in the same work group, in addition to using the handset as a regular digital cellular phone with voice and data capabilities. Without such compatibility, the company won't launch a 1xRT network, Friedland noted in a recent report. Even once the company makes a decision, it will still take Nextel 18 to 24 months to get 1xRT ready for commercial deployment. Other national digital wireless operators such as AT&T Wireless, Sprint PCS, VoiceStream and Verizon Wireless plan to begin rolling out next-generation services as early as the third quarter of this year. Meantime, Nextel plans to use compression technology to increase its data throughput rates to around 56 kilobits per second by the end of the year. That should keep the company competitive with other carriers that plan to launch 2.5G networks based on GPRS and CDMA, which tout data speeds in the 144 kbps range, Friedland says. CDMA 1xRT is attractive to Nextel because the technology requires a relatively small amount of bandwidth. Deploying a non-iDEN technology will let the company, which now relies solely on Motorola Corp. handsets, make use of handsets and network infrastructure from multiple vendors, Friedland notes. The company also sees 3G's ability to boost the voice capacity of its network as the attraction for migrating to advanced services. That means Nextel will have to spend less on new cell sites to increase the number of people who can use the network at the same time. Schaefer says Nextel already has sufficient spectrum licenses to deploy 3G without buying additional spectrum. Nextel isn't ready to estimate how much it's willing to spend to roll out 3G. The company sold $1.25 billion in debt in January, which boosted its cash to about $4.8 billion as of March 31. That, combined with cash flow from operations, "provides Nextel with sufficient financial flexibility to execute its business plans for at least the next two years," says Fitch, the Chicago-based bond rating company. Nextel's been fairly successful in selling its data services over the phone to its largely business and enterprise customer base. About 14 percent of its 7 million customers have signed up for wireless data services since the company began offering its always-on data and Internet connections in April 2000. Its top data speeds are in the range of 19.2 kbps, slightly faster than the 14.4 kbps offered by Sprint PCS over its own current generation digital network. Unlike networks based on circuit switched or cellular digital packet data (CDPD) technology, Nextel's data network is always on and the carrier doesn't count data traffic against a customer's voice minutes. Also, if a phone call comes in while using the data services, the data isn't interrupted by the phone call. Nextel's wireless data penetration rate is the highest of the domestic wireless carriers, Friedland says. The company is targeting its wireless messaging solutions to the white collar market, using Wireless Knowledge's Workstyle Server, which provides subscribers with real time access to Microsoft Outlook and Lotus Notes email, contact and calendar information. broadbandweek.com Nokia calling Nextel?