cdma2000 is the way to go for 3G and not UMTS - reports

date: January 23, 2002

3G wireless technology has arrived and the year 2002 will find networks spending enormous sums on deployment and on trying to convince customers to buy both voice and data service, writes Editor Andrew M. Seybold in Forbes/Andrew Seybold's Wireless Outlook. But, he adds, the day/year likely will belong to those choosing cdma2000 1x 3G technology, for several reasons.

The primary technology competitor to cdma2000 1x, GSM/GPRS, has been touted as a "world standard," Seybold notes, but "...I am convinced that CDMA is so superior that the companies that deploy it have a huge advantage."

Seybold believes that European networks that spent billions of dollars on 3G spectrum to accommodate expected hordes of UMTS customers are headed for serious short-term trouble. Turning to the U.S. market, he examines the probable expenditures, pricing approaches and customer conversion expectations of the networks deploying 3G technology and concludes that CDMA carriers could end the year with twice the number of data users as the GSM/GPRS operators.

Network upgrades are faster, cheaper and easier with CDMA, he says, and if data should be slow to catch on, cdma2000 1x will offer a significant advantage since it increases voice capacity 1.5-2+ times, allowing network growth with or without data. Conversely, GPRS -- the data companion to GSM -- offers only the addition of data to the network, with no concurrent impact on the network's capacity for voice transmission.

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