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To: Andrew N. Cothran who wrote (28209)	4/23/1999 5:09:00 PM
From: Ruffian	Respond to of 152472

Cdma "On A Strong Move"> From the April 26, 1999 issue of Wireless Week Carriers Report Strong Growth By Monica Alleven Service providers using code division multiple access technology boasted strong growth in the first quarter, bolstering hopes for CDMA proponents and manufacturers alike. Sprint PCS led the pack, adding 763,000 new customers, including 20,000 from its acquisition of PrimeCo Personal Communications LP's unit in Hawaii. Sprint PCS' first quarter was second only to its previous quarter, which included traditionally higher sales generated during the holidays. AirTouch Communications Inc., in what could be its last quarter as a stand-alone company, reported 381,000 new domestic subscribers, while Bell Atlantic Mobile added 190,000 U.S. customers. PrimeCo passed the 1 million subscriber mark during the quarter, ending with 1.1 million customers. Quarterly net additions of 203,000 were the highest in its two-and-a-half year history. As for Sprint PCS, several factors contributed to its successful quarter, including network expansion, strong distribution channels, more handset choices and increased sales through the Sprint Corp. parent, according to Sprint PCS CEO Andrew Sukawaty. The addition of cities such as Chicago also helped boost its total net adds. "I think the single biggest thing was the national network falling in place," he said. To further expand network coverage and increase capacity, Sprint last week awarded a three-year, $780 million contract to Lucent Technologies Inc. How much of that contract will be spent this year is difficult to determine, depending on site acquisition and market-specific capacity needs, he said. Analysts said Sprint PCS' growth was not too surprising given it is the only national carrier that offers rate plans as low as $30, including long-distance and roaming, and it added several new markets in the quarter. Analysts expect greater network coverage will improve Sprint PCS' churn rate, which was about 3 percent in the first quarter. While lower price plans spurred by competition have increased overall subscribership for wireless, Sprint PCS' low price plans have painted the carrier in some eyes as a price war instigator. Sukawaty said that's not so. "I don't think there is a price war," he said. "I think we have seen declines that were predicted ... People want to get the best price." Because of customer demand, Sprint PCS had a shortage of handsets during the quarter, but that was due to underestimated demand; all manufacturers met their commitments, he said. Ira Brodsky, consultant at Datacomm Research Co. and a long-time CDMA proponent, expects further strong growth by CDMA carriers. "I think CDMA is racing ahead of [global system for mobile communications] in North America, and it's questionable whether GSM will ever be able to catch up," he said, noting that it was just a couple years ago when skeptics said CDMA wouldn't work.