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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?


To: Eric L who wrote (33148)3/5/2003 5:47:04 PM
From: kech  Read Replies (3) | Respond to of 196660
 
The nice thing about Nextwave's plan is that it dodges the spectrum allocation problem posed by Sprint. (Assuming that this is the real issue and not just that they don't have enough borrowing capacity to do anything and need a convenient excuse not to right now). If they were really concerned about setting aside spectrum, they don't have to. Sprint can just use Nextwave until, and if, they find out that there is enough demand out there to use a channel. They don't even have to switch to their own channel everywhere, they can just do it in markets where they feel they have channels to spare and continue to use Nextwave for EVDO in the others. If they were really just concerned about the borrowing capacity, then again, they don't have to borrow a ton, just "pay as you go for EVDO". Hey that kind of has a ring to it doesn't it. heh heh.

Sprint PCS CTO, Oliver Valente who built out Sprint PCSs all digital network from scratch commencing in late 1995 and who has stated publicly from day one that it was highly unlikely that Sprint PCS would ever implement 1xEV-DO because it would require dedicating wireless voice capacity to data and instead would wait for 1xEV-DV to be available.

As far as Strigl's concern, Verizon also doesn't have to dedicate hard-to-spectrum. Again they can just wait and see if the "tangible" demand of today, which could also use EVDO, increases into demand for other data. Again, the point isn't that EVDO is only needed for unusual data demands. The point is that any data can be used and it will be very CHEAP. Verizon could learn whether there is a lot of demand for CHEAP data without necessarily stopping to bill for 1X data at $99 per month. Hopefully they will learn that there is a lot of demand at more reasonable prices. Like Sprint, Verizon is also not anxious to take on a bunch of debt, and this could also be the same reason for their caution. Nextwave can help them reduce up front borrowing to get this service going.

Strigl... [dedicating hard-to-get and expensive spectrum--the lifeblood of any wireless carrier--solely to a data service is not] something sustainable long term. There is a tangible data value today, [but] for consumers, that value isn't the high falutin things you read and hear about, it's actually (text messaging) and downloadable applications." - Dennis Strigl, Dec 11, 2002

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To: Eric L who wrote (33148)3/5/2003 9:18:16 PM
From: rkral  Read Replies (1) | Respond to of 196660
 
Eric L, re "it was highly unlikely that Sprint PCS would ever implement 1xEV-DO because it would require dedicating wireless voice capacity to data and instead would wait for 1xEV-DV to be available.", or something similar attributed to CTO Oliver Valente of Sprint PCS.

Oliver Valente's viewpoint is totally justified IMHO, if Sprint's spectrum utilization is approaching 67% (2/3) for voice calls, in areas where they have only 5 MHz bandwidth. The utilization during the "busy hour" should be considered so as to not decrease QoS.

This is because (1) the 5 MHz BW can only have 3 1.25 MHz BW CDMA carriers, and (2) a carrier allocated for 1xEV-DO can *only* do data.

The restriction is less severe for the originally auctioned 15 MHz bandwidths, but I don't know if they stayed that way.

Ron