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To: Maurice Winn who wrote (651)	2/1/2002 11:22:10 PM
From: pcstel	Read Replies (2) \| Respond to of 1088

Maurice: PCSTEL, it's an unpleasant idea that governments deliberately keep a shortage of spectrum available, when there's a lot of it waiting to be used, for the purposes of maintaining a high tax take [by auction] from those who want to use spectrum. That's nothing less than extortion. It's not an unpleasant idea. It just good economics! You maintain enough capacity on the supply side so that the price does not get too high.. or too low. You control the technology deployed so that each company competes on a even basis. It's not just Europe. China does the same with pricing regulation. Everyone is complaning that their will be no discount for CDMA service in China compared to GSM. Lots more capacity on the CDMA side. Should mean lots of cheaper minutes.. Well, that's not the way it turns out.. The Chinese would rather use the capacity of the CDMA system to expand the capacity of these mobile services by pricing them on a GSM = CDMA. This way the owner of the systems ( you can tell us who that is) can make more money by deploying CDMA with increased capacity vs. GSM. It does not mean that CDMA is going to be cheaper. You want to be able to supply your residents with good quality dependable communications with the availability to add additional capacity at mimimal cost, into the system as required, while maintaining pricing. It's kind of like OPEC. If Venezuela finds a well with 8 times as much oil as any previous well.. Do they sell it 8 times cheaper? Oil or Mobile Phone Minutes.. It's all the same. Controlling supply is an integrel part of maintaining a stable economic environment. You call it extortion, I call it smart. My theory has no flaws and is not a theory. It's an accurate description of exactly how things work. OK.. If you say so.. But you better tell that to Verizon who just said they don't need the spectrum anymore. Well at least for 18 months or so.. And then we will have the dual antenna diversity phones which will provide another doubling of capacity.. Then they won't need more capacity for another 5 years! It is clear that CDMA technology has made spectrum more valuable, because everyone needs less and less of it. PCSTEL