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To: JohnG who wrote (19375)	4/7/2002 12:19:13 PM
From: Eric L	Read Replies (3) \| Respond to of 34857

John, What the heck is 1XEV RTT? Did you ever notice how hard your posts are to read? If you compose using the proper tool, you can avoid that. It takes about 15 seconds to take that meandering POS you just posted and make it readable, and another 15 seconds to spell check so you don't appear to be a grammar school dropout. I mean that if you are going to take the time to express yourself, why not do it in a fashion that people will read? >> Two Faces of Wireless--First is user experience and Second is Operator profitability. FACE 1--User experience Data rate is a way of providing a satisfactory user experience. Streaming music video, Picture phones, GPS location map functions require it. a) MOBILE ENVIRONMENT OR FIXED ENVIRONMENT 1XEV RTT provides it to some extent with Rev 0 at 153Kbps data rates and more so with Rev A at 307Kbps data rates. 1XEV DO provides it at 2.4 Mbps data rates and fixture 4.8 Mbps data rates. GPRS also provides it to some extent with avg 30 to 50Mbps data rates. b) FIXED ONLY ENVIRONMENT: In a fixed location, 802.11b is very capable of providing good user experience at many Mbps FACE 2 --Operator Profitability. Broadly speaking, it is data capacity that determines operator profitability. Operators must make a profit to survive. Because they compete with each other, they must sell their data capacity used for similar services at prices not two terribly different from each other. For different operators, covering a set area in a medium city, $100 million or so may provide adequate cell sites to cover the city. However, for a CDMA 1X RTT/ 1XEV DO operator, the capacity provided will be several times the capacity provided for a GSM/GPRS operator. 1) MOBILE EVNVIRONMENT OR FIXED ENVIRONMENT The CDMA2000 (1XEV RTT) service provides a very large data capacity. The 1X EV DO provides an even larger data capacity. UNFORTUNATELY, the GSM/GPRS service provides a very small data capacity.] 2) FIXED ENVIRONMENT The 802.11b service provides a very huge data capacity Given this situation, in a mobile environment, both the CDMA operators using 1XRTT and 1X EV DO and the GPRS operators can provide a satisfactory user experience for limited video user applications. For streaming music video, the GPRS just doesn't do well. A GPRS operator can spend more money and convert to W-CDMA and provide a little better experience than 1X RTT. Unfortunately, the GPRS operator cannot even come close to the revenue stream of the 1X RTT or 1XEV DO operator. AND THIS IS THE RUB!! In a fixed environment, GPRS still fails to compete economically, but there is the possibility of the GPRS operator installing seamless blanket 802.11b coverage in fixed locations such as office buildings, airports, restaurants and public places. the 802.11b coverage. The GPRS operator can thus make a profit on high data rate applications in those fixed locations. On the other hand, the CDMA 1XRTT or 1XEV DO operator can also supplement his capacity in a fixed environment by offering seamless 802.11b. Thus we see Voice Stream, realizing that its GPRS just doesn't have the capacity to allow it to compete profitably, contracting with StarBucks to install 802.11b in their stores. If GPRS won't compete economically in a mobile environment, at least supplementing it with 802.11b will allow them to compete profitably in a fixed public location. Unfortunately for VoiceStream we now see 802.11b competition by Boingo springing up. Small 802.11b operators can simply affiliate with Boingo and sell a nation wide 802.11b service to consumers. Boingo could even conceivably offer the service through Sprint (as QCOM ASICS do incorporate 802.11b reception) or Verizon. Thus the "3G on the cheap" strategy of VoiceStream is a little fuzzy because it appears to have zero competitive advantage in fixed locations and a huge competitive disadvantage in mobile situations. Clearly Boingo, if it grows will become an acquisition target for the GSM crowd. The more sane solution for GSM operators is to simply switch to GSM 1X rather than follow the GPRS/WCDMA path. This way, the GSM operators acquire the CDMA air interface with its huge data capacity and can compete profitably with CDMA 1XRTT/ CDMA 1X EV DO operators. In Europe, where socialism discourages competition, GSM operators will only need to compete successfully with each other. << Best, - Eric -

To: JohnG who wrote (19375)	4/7/2002 2:51:25 PM
From: JohnG	Respond to of 34857

REVISED "Two Faces of Wireless" Two Faces of Wireless--First is user experience and second is Operator profitability FACE 1--User Experience High data rate is a way of providing a satisfactory user experience. Streaming music video, Picture phones, and GPS location map functions require it. a) MOBILE ENVIRONMENT OR FIXED ENVIRONMENT 1XRTT provides good user experience with Rev 0 at a 153 Kbps data rate and an even better user experience with Rev A at a 307 Kbps data rate. 1X EVDO provides a superior user experience at a 2.4 Mbps data rate and a future 4.8 Mbps data rate. GPRS also provides a fair user experience with average 30 to 50 Kbps data rates. b) FIXED ONLY ENVIRONMENT In a fixed location, 802.11b is very capable of providing good user experience at perhaps 12 Mbps FACE 2 --Operator Profitability. Broadly speaking, it is the data capacity of the cell sites that determines operator profitability. Operators must make a profit if they are to survive. Because they compete with each other to provide similar services, they must sell their data capacity at prices not too terribly different from each other. For different operators, covering a set area in a medium city, $100 million or so may provide adequate cell sites to cover the city. However, for a CDMA 1X RTT or 1X EVDO operator, the capacity provided would be several times the capacity provided for a GSM/GPRS operator. Thus, with an equal investment in cell sites, the CDMA operator has the potential to receive several times the revenue received by the GSP/GPRS operator. 1) MOBILE EVNVIRONMENT OR FIXED ENVIRONMENT The CDMA2000 (1XRTT) service provides a very large data capacity. The 1X EV DO service provides an even greater data capacity. UNFORTUNATELY, the GSM/GPRS service provides a very small data capacity. 2) FIXED ENVIRONMENT The 802.11b service provides a very huge data capacity Given this situation, in a mobile environment, both the CDMA operators using 1XRTT or 1X EVDO and the GPRS operators can provide a satisfactory user experience for limited video user applications. For highly demanding streaming music video, GPRS just doesn't do well. A GPRS operator can spend more money and convert to W-CDMA and provide a little better experience than 1X RTT. Unfortunately, the GPRS operator cannot even come close to the potential revenue stream of the 1X RTT or 1XEV DO operator. THIS IS THE RUB!! In a fixed environment, GPRS still fails to compete economically, but it is possible for the GPRS Operator to install seamless blanket 802.11b coverage in fixed locations such as office buildings, airports, restaurants and public places. The GPRS operator can thus make a profit on high data rate applications in those fixed locations. On the other hand, the CDMA 1XRTT or 1XEV DO operator can also supplement his capacity in a fixed environment by offering seamless 802.11b. It is because of the GSM/GPRS capacity limitations that we see Voice Stream, realizing that its GPRS just doesn't have the capacity to allow it to compete profitably. To relieve this problem, Voice Stream is contracting to have 802.11b installed in public locations. Recently VoiceStream contracted StarBucks to install 802.11b in their coffee shops. VoiceStream hopes that, If GPRS won't compete economically in a mobile environment, at least supplementing it with 802.11b will allow them to compete profitably in a fixed public location. Unfortunately for VoiceStream Boingo is now providing 802.11b competition on a nation wide basis. Small 802.11b operators can simply affiliate with Boingo and have their 802.11b service marketed nation wide. Boingo could conceivably even offer the service through Sprint or Verizon (because QCOM ASICS do incorporate 802.11b reception). Thus the "3G on the cheap" strategy of VoiceStream is a little fuzzy because it appears to have little competitive advantage in fixed locations (because 802.11b will be available to all operators) and a huge competitive DISADVANTAGE in mobile situations (because GPRS provides operators with such a low data capacity). Clearly Boingo, if it grows, will become an acquisition target for the GSM operators. The more sane solution for GSM operators is to simply switch to Qualcomm's new GSM1X interface rather than follow the GPRS/WCDMA path. This way, the GSM operators acquire the CDMA air interface with its huge data capacity and can immediately compete profitably with CDMA 1XRTT and CDMA 1X EVDO operators. In Europe, where socialism and national industrial policy discourages competition, GSM operators will only need to compete successfully with each other. Thus GSM/GPRS operators will have increasing difficulty remaining profitable in countries where they go head to head against CDMA. However, countries must adopt CDMA if they are to have the benefits of applications requiring high data rates. It is in the US, Latin America and Asia where we see CDMA competing directly with GSM/GPRS. If consumers love the rich multimedia applications, then GSM/GPRS will face an impossible competitive situation situation. Even voice only competition will be tough for GSM/GPRS because CDMA1xRTT simply has much greater voice capacity per cell site.