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EDGE will not affect UMTS said CEO
February 18, 2003
Nokia said Tuesday emerging cheaper alternatives to 3G networks
will not cause additional sales declines in the already hard-hit
industry.
EDGE network technology, also known as "3G Lite," is being touted
by equipment vendors like Nokia as a cheap and efficient way to
give consumers three times faster mobile connections than current
networks, but without the heavy costs associated with 3G UMTS.
"EDGE is a small step for the operators and it will roll out at
the same time as UMTS," Nokia Networks Senior Vice President J.T.
Bergqvist said.
There will be customers who need high-speed wireless connections
which EDGE cannot handle, he said.
Network equipment vendors like Ericsson, Motorola, Lucent and Siemenshave
said here that mobile operators increasingly inquire how they can
use EDGE, although most maintain that it will not impact overall
equipment sales.
Operators must have both EDGE as well as 3G systems UMTS, partly
because they are under legal obligations to roll out these networks
for which they bought expensive licenses in 2000.
According to Bergqvist European operators are still focused on
UMTS, mostly in busy metropolitan areas, and they will invest in
EDGE elsewhere. Berqvist believes EDGE will play a greater role
in markets outside Europe.
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