CDMA Community Talks Loud At Americas Congress
LOS ANGELES - Speakers at today's opening session of the CDMA Americas Congress here painted an image of a technology
on the march, while taking an occasional moment to gloat over the predictions of doom that filled the air just a few years ago.
"I still have presentations in my desk saying that CDMA will never work," said CDMA Development Group Executive Director
Perry LaForge. "Today those same people are doing their 3G systems planning." Sprint PCS [PCS] CEO Andrew Sukawaty made
the same observation, adding that "They are planning their 3G systems using CDMA. ... We're not the upstart technology we once
were."
Based on current growth rates, CDMA supporters can be forgiven for being a bit smug. In addition to new network launches and
announced buildouts around the world in both the mobile and fixed wireless local loop markets, U.S. growth is continuing at a rapid
rate. Ted Hoffman of Bell Atlantic Mobile [BEL] (BAM) said that by the end of this year, 90 percent of BAM's pops will be
covered by CDMA, and 100 percent will be covered by the end of 1999.
Hoffman added that 40 percent of BAM's traffic is currently digital. The company is currently seeing 6x to 8x capacity gains over
analog, he said, exceeding its expectations and making possible average minutes of use per user three times higher than those of
analog users.
Sukawaty was even more bullish on CDMA. Capacity gains over analog have grown substantially since the initial CDMA network
deployments, he said, noting that these have been driven by software enhancements rather than new hardware. Because of these
capacity gains, Sprint has been able to go after high usage customers, who bring in more money. He said Sprint's average monthly
revenue per user averaged $57 per month for the first three quarters of 1998. Three years earlier, he said, analysts had predicted
figures in the $30 to $35 range, based on the observation that most cellular growth was taking place in the low-usage safety and
security markets.
Now that they have proven CDMA technology works, supporters can now shift modes and claim that GSM is "in trouble."
Sukawaty predicted that "there won't be a coherent, national GSM footprint for three to five years."
One thing Sukawaty was notably not bullish on, however, was third-generation (3G) technology. While he did toe the CDMA party
line on convergence, Sukawaty said that current CDMA providers will "leapfrog" other carriers based on their earlier choice of
CDMA, no matter what ultimately happens with standards.
On the other hand, Sukawaty did not sound like a man eagerly waiting to buy and deploy 3G. He said he does not see an
application driving the industry toward 3G with the same urgency that quality and capacity demands drove it toward digital.
Data is increasingly important to lucrative business customers, Sukawaty said, noting that 40 percent of the requests for proposal
Sprint gets from corporate customers include data as a qualifying factor. However, he also said Sprint plans to focus "on having
the CDMA system that we have deliver more." Sukawaty said he thinks the demand for increased data speeds can be met with
enhancements to current technology for the next seven to 10 years.
CDMA-Based PCS Comes To West Virginia Markets
Motorola Inc. [MOT] announced yesterday (11/18) the service launch of a $38 million, CDMA-based PCS network in West
Virginia by Intelos, a company managed by CFW Communications [CFWC].
Commercial service has begun along the I-64 corridor between Charleston and Huntington, an extension of CFW's existing
CDMA system serving nearby markets in western Virginia. Intelos also plans to expand its Charleston area footprint while
introducing service in the Morgantown, W.Va., market next year.
Motorola installed SC 611 CDMA microcells and the SC 4852 advanced, single-cabinet base station in the Intelos network, which
also incorporates the large-capacity EMX-5000 digital switch. Intelos is offering 1.9 GHz handsets from Qualcomm Inc. [QCOM],
Sony Corp. [SNE] and Samsung Electronics America, as well as Qualcomm's dual-mode QCP 2700 mobile phone. (Joe Arimond,
Motorola Cellular Infrastructure Group, 847/632-3889; Melinda Conrad, CFW Communications, 304/353-8900.)
Key Tronic Wins OmniTracs Contract
Spokane, Wash.-based Key Tronic Corp. [KTCC] will supply Qualcomm Inc. [QCOM] with the mobile communications
enhanced display units for its OmniTracs system. Financial details were not disclosed but the multi-year contract expands Key
Tronic's original design manufacturing business. The company offers in-house turnkey services that include every step of the
product development process: from concept development, design and low-cost manufacturing to distribution and marketing.
OmniTracs is a two-way mobile satellite communications and tracking system. The system is used primarily by commercial
trucking fleets to link drivers in their cabs with their headquarters, providing data transmission, position reporting services and
information management systems. OmniTracs is used by more than 800 transportation companies and other customers in Brazil,
Canada, Europe, Japan, Korea, Malaysia, Mexico, the Middle East, Russia and the United States, with in excess of 250,000
terminals in use worldwide. (John Barnes, Key Tronic, 509/927-5560; Karen Bowman, Qualcomm, 619/658-5870.)
Software Development For 'Smart' Phone Spurred By
Qualcomm
Qualcomm Inc. [QCOM] announced yesterday (11/18) a software developer's program for the "pdQ," its upcoming "smart"
phone. The program will give applications developers additional resources and tools to build software-based functionality into the
device, which will be a cross between a CDMA wireless handsets and a PalmPilot-like personal organizer.
The wireless data-oriented pdQ will incorporate technology from Palm Computing, the 3Com Corp. [COMS] subsidiary that
developed the platform for the highly popular line of Palm personal organizers.
A new software developer's kit will, Qualcomm said, enable developers to write new applications or enhance existing Palm III
applications using the pdQ's ability to provide continuous wireless network connectivity. A beta version of the kit is expected to be
available next month, followed by version 1.0 in January.
External developers will be able to use a Web site (http://www.qualcomm.com/pdQ/developer.html) and three E-mail lists to
correspond with Qualcomm's development support team and coordinate their activities with other pdQ developers.
The developer community surrounding the Palm Computing platform already has created more than 1,000 applications that will run
on the pdQ. We look forward to seeing the innovations spurred by the potent combination of widespread wireless data
infrastructure, a 'smart' phone -- the pdQ -- that is targeted to the consumer market, and the creativity of the Palm developer
community," said Paul Jacobs, president of Qualcomm's consumer products division. (Christine Trimble, Qualcomm,
619/651-3628.)
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