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To: bananawind who wrote (13946)8/20/1998 2:01:00 AM
From: Maurice Winn  Read Replies (1) | Respond to of 152472
 
Jim, interesting that Prudential is getting the idea - a little anyway. They are only on the first step to understanding. Qualcomm and others will no doubt come lumbering over the horizon in a few years. I hope Qualcomm isn't the last one to notice. If Nokia gets the idea first, they'll absolutely clean up.

Mqurice



To: bananawind who wrote (13946)8/20/1998 9:51:00 AM
From: engineer  Respond to of 152472
 
I find his system utilization numbers interesting. I think that on the average overall, it may be as low as 20%, but during peak times at peak areas it is more like 70%.

In any case, to get a higher utilization, the use of packet data as a background filling air time minutes of use application would be very good for the operators. packet requires the use of the traffic channel to send and receive data, but since it is non-real time, the operator can offset the packet when the voice utilization gets higher or they need a traffic channel to perform handoff.

If the operators would focus on packet data for their systems, then they could sell alot of MOU (minutes of use) and bring that system level back to 25-35% real fast.

The circuit switched route that they are taking right now (or within 1-2 months) will require a full time use of a traffic channel and will only serve to block the system when it is in high volume voice use. It will however build the MOU alot anyway.

Selling packet data at break even pricing is analogus to using DRAMS to fill Semiconductor fabs so there is no loss. You keep your airwaves filled at breakeven pricing, allowing you to build out coverage with the cost covered by the data minutes and you make the profit on the expanded voice calling range, capacity, etc using more voice minutes. Packet data traffic once installed tends to look like a constant.