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March 08, 1999 08:20
Frost & Sullivan - CDMA Gives Carriers Edge Over Competitors Using
Other Technologies
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MOUNTAIN VIEW, Calif., March 8 /PRNewswire/ -- At a time when service competition among carriers is
reaching unprecedented levels, a technically robust and cost-effective air interface standard such as Code
Division Multiple Access technology (CDMA) offers carriers a clear edge over competing carriers using
other technologies.
According to the latest strategic research by Frost & Sullivan (www.frost.com), World CDMA
Infrastructure Equipment Markets, revenues for the technology were estimated at $8.5 billion for 1998,
making CDMA the hottest of the three cellular standards (GSM, TDMA and CDMA). The basis of this
competitive edge stems from CDMA's advantage in higher potential capacity over competing standards.
This higher capacity in turn can lead to lower infrastructure deployment and maintenance costs for
carriers.
"The technology itself is the basis of the advanced Third Generation Cellular networks," says Frost &
Sullivan Telecommunications Analyst Subodh Karnad, "and many of the more dynamic cellular and PCS
carriers around the world are deploying CDMA equipment."
Quality, reputation, price, and the ability to provide customer financing and support are the key ingredients
in the competitive model for the market. "The most important point to stress is that CDMA is now a valid,
proven and capable technology," says Karnad. "This is significant because, in the past, CDMA has often
been ruled out as a new and unproven standard."
Early success in key markets such as the U.S., Canada and Korea has eroded the market skepticism
that prevailed amongst carriers, investors and regulators.
Any threats that might arise in this market come from the regulatory forces that might prevent the entry of
CDMA in certain markets. Most of the current participants in this market are large, well-funded mega
telecom vendors such as Lucent, Motorola and Nortel.
This research provides an up-to-date picture of CDMA's growth on a worldwide basis. It offers a
region-by-region analysis of the market, including North America, Asia Pacific and Latin America. It also
offers revenue forecasts for the total CDMA infrastructure market, and is further broken down into individual
equipment segments. These unit and revenue forecasts will provide valuable assistance in business
planning, forecasting, demand estimation, discovering regional opportunities and finding information on
major infrastructure vendors.
CDMA has clearly established itself as the major standard for digital cellular and PCS services. With clear
advantages in cost, clarity and capacity, CDMA is expected to continue to expand its footprint in various
markets all over the world.
The technologies reviewed include CDMA, TDMA, GSM, and AMPS.
Market participants include: 3Com, Advantest Corporation., Aldiscon, Allgon Enterprises, Anritsu Wiltron
Company, Comarco Wireless Technologies, DSP Communications Inc., Fujitsu Limited, Gryason
Electronics Company, Hewlett-Packard, Hitachi Telecom, Hughes Network Systems, Inc., Hyundai
Electronics Industries Co. Ltd., IFR Systems Inc., LG Information and Communications Ltd., LSI Logic,
Lucent Technologies, Metawave Communications, Mobile Systems International, Motorola (Cellular
Infrastructure Group), Panasonic, Nortel, ORA Electronics, Ortel Corporation, Qualcomm Inc., Recal
Instruments Inc., Rohde& Schwartz GmbH & Co., Sage Instruments, SAFCO Technologies, Samsung
Electronics Ltd., Sema Group Canada Ltd., Spectrian Corporation, Tecore Inc., Telecom Analysis
Systems, Telogy Networks, Texas Instruments and VLSI Technology Inc.
This telecommunications industry research has integrated the Market Engineering consulting philosophy
into the entire research process. Critical phases of this research included: Identification of industry
challenges, market engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help the market participants navigate successfully
through the telecommunications market.
Frost & Sullivan is an international marketing consulting and training company that monitors the
telecommunications industry for market trends, market measurements and strategies. This ongoing
research is utilized to update a series on online research publications such as the CTI & CPE Custom
Subscription (www.frost.com/online), and to support industry participants with customized consulting
needs.
Visit the Frost & Sullivan Web site at: www.frost.com.
World CDMA Infrastructure Equipment Markets
Report: 5423-65 Date: March 1999 Price: $3450
SOURCE Frost & Sullivan
/NOTE TO EDITORS: Free executive summaries of all Frost & Sullivan
research are available to the press./
/CONTACT: Kimberly Barney of Frost & Sullivan, 650-237-4383, or fax,
650-903-0915, or kbarney@frost.com/
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