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To: gdichaz who wrote (43358)	6/10/2001 10:02:41 AM
From: Eric L	Respond to of 54805

Cha2, << In the past, I have often wondered why Ericsson seemed not to be actively promoting CDMA as well as GSM. >> Ericsson has been promoting CDMA as well as GSM and TDMA. That is why they will be providing infra to Pegaso PCS, KDDI, Unicom. This "promotion" has been more passive than active, however, and it is focused on existing cdmaOne carriers choosing the cdma2000 migration path which we have sometimes referred to as a "no brainer". They will not be very actively promoting technology flips from GSM, but are prepared to support a TDMA flip to GSM, to CDMA, or migration to TDMA-EDGE. It is important to realize that Ericsson has essential IP in WCDMA, and like Nokia is firmly committed to open standards, and until recently has been the most influential vendor in GSMA, ETSI, 3GPP, and UMTS forum - probably still is. Like Nokia, the majority of Ericsson's massive R&D dollars have been focused on the development of WCDMA over the last several years. While prepared to respond to an RFP with a cdma2000 solution do not look to them to provide an active campaign to promote cdma2000. It could be said that Ericsson is promoting cdma2000, every bit as enthusiastically and aggressively as Qualcomm is promoting WCDMA - and just as passively. << When do you suppose Nokia will issue a paper on its proposed path from TDMA to CDMA 2000, so Nokia will have [all the] "Bases covered"? >> Not in the foreseeable future. Possibly when the 1xEV-DV standard is finalized, but that is hardly certain. Nokia does not need to have all it's bases covered to be a strong number 2 to Ericsson on the infra side of wireless, and it would not be in the best interests of their shareholders to dump R&D dollars on cdma2000. Better to remain focused. The numbers are on their side. On the infrastructure side of their business, Nokia has gradually expanded its very focused initiatives from GSM-1800 to GSM-850 and GSM 1900 and more recently HSCSD/GPRS/EDGE/WCDMA. They only have 85% of the bases covered on the infrastructure side of their business but this focus has paid off rather handsomely in increased market share where right now the vast majority of revenue dollars are being contracted for buildouts in IMT-2000 core spectrum. Big losers in the game are the other vendors who are attempting to recoup their R&D investments in WCDMA development, and finding it difficult to compete with Ericsson and Nokia. Nokia, of course, does have the majority of their bases covered on the razor blade side of their business, where they are the legitimate King of a huge sector, continue to increase market share, and are maintaining margin while taking about 80% of the industry profit in handsets. - Eric -