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To: DaveMG who wrote (23873)3/8/1999 6:18:00 PM
From: Ruffian  Read Replies (3) | Respond to of 152472
 
Black Is White?>

War over the world's wireless future
By John Borland
Staff Writer, CNET News.com
March 8, 1999, 4:00 a.m. PT

Policy makers from around the world are converging on Brazil this week to help
write the future of wireless phones.

A meeting of the relatively obscure International Telecommunications Union (ITU) is
attracting uncharacteristic attention from both government officials and industry executives.
Preparations prompted an angry exchange of letters between the United States and
Europe earlier this year.

At stake is the possibility of a single, worldwide standard for wireless phones, now divided
among several largely incompatible technologies in various regions.

An ITU decision on a wireless standard could eventually allow consumers to use a single
phone wherever they are in the world--instead of today's system, which often requires
switching phones when traveling between U.S. states or overseas. The outcome also will
affect what kinds of high-speed Internet and other services are available through a cell
phone, and how much money consumers will pay for these services.

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The ITU's goal of standardization sounds like a good thing, at least from a consumer's
point of view. But the process has been controversial, with groups from the United States
and Europe fighting hard to make sure their own standard--or something very close--comes
out on top.

In today's wireless world, several incompatible versions of technology are currently in use.
Most of Europe, Southeast Asia, and parts of the United States--or some 50 percent of the
world's mobile phone users--use a technology called GSM.

But strong contingents in the States and elsewhere use opposing standards, alternately
called CDMA or TDMA.

Each of these different technologies can be upgraded to a create a "third-generation"
standard, allowing them to support high-speed Internet access and other new services.

This diversity, however, has created a field of landmines for the effort to create
third-generation standards. European officials favor a
technology that will boost local mobile giant Ericsson, but
U.S. officials have complained about the European
movement, in order to protect the interests of U.S.
companies like Qualcomm.

Those conflicts heated up last year and early this year into
an angry series of letters between European Union officials
and U.S. regulators, including Federal Communications
Committee chairman William Kennard, Secretary of State
Madeline Albright, and Secretary of Commerce William
Daley.

A bipartisan group of 14 influential U.S. Senators turned up
the pressure late last week, sending a letter to President
Clinton asking him to hold the line for multiple standards,
rather than compromise for a single standard.

Meanwhile, a group of industry players last month agreed to support a proposal that
backed multiple standards, with some new compatibility between the U.S. and European
flavors of CDMA.

Brazilian face-off
The 11-day ITU meeting, which kicks off today in Fortaleza, Brazil, should settle some of
the last year's debate.

The group has a deadline by the end of March to set the beginnings of technical
specifications for the third-generation standard, with a final deadline by the end of 1999.
This means that by the end of the 11-day meeting, it should be much clearer which one or
which group of the competing technologies will drive future wireless investments.

Some close to the process say the group is likely to put off the decision further, however,
to allow more time for the industry to develop its own convergence proposals.

"There is progress being made in the community," said Jim Tackesh, director of advanced
programs for the U.S.-based CDMA Development Group. "The ITU wants to accommodate
that."

Officials from the FCC and the Commerce Department are expected to be on hand to help
keep U.S. interests up front. European officials will also be in attendance, and the new
Secretary General of the ITU will meet privately with industry and government officials, in
an attempt to smooth the waters.

But it's not yet clear whether one of the competing technologies, a "harmonized"
combination, or a recommendation to allow several standards to coexist will come out of
the meeting.

"Almost 50 percent of the mobile phone users in the world are using a phone based on
GSM standards," said Ray Jodoin, senior wireless analyst for the Cahners In-Stat Group.
"If I'm playing roulette, and almost half the wheel is black, and the rest is sprinkled with red
and white, I know where I'm putting my money."

But ITU decisions are hard to predict, and very political, Jodoin cautioned. "They can walk
into a room telling you white is white and come out saying black is white."

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