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Verizon WCDMA adoption gets bad views

date: June 8, 2001

Verizon Wireless eventually will use a W-CDMA network standard for 3G wireless services so far is receiving mixed reviews from analysts. Previously linked with a cdma2000 migration path to 3G, but it may consider W-CDMA to please stakeholder Vodafone, which has chosen W-CDMA and threaten to put out of the company unless Verizon choice WCDMA.

''We certainly have every intention to take every advantage of our international footprint with our parent company, and that likely means W-CDMA,'' spokeswoman Andrea Linskey said Wednesday. Linskey said Verizon's short-term plans to roll out 3G services on cdma2000 1X and 1X-EV platforms are firm. In March, the carrier inked a $5 billion deal with Lucent for the buildout of the 1X network.

Is international roaming a big enough revenue generator to justify the cumbersome migration to W-CDMA? Depends whom you ask. Some industry observers say that the future holds fierce competition between a few megacarriers loathe to pay competitors roaming fees for traveling subscribers. Others, including analyst Jeffrey Kagan, say luring the so-called 'power users' and keeping them could be key in the future.

But Iain Gillott of iGillott Research says roaming isn't a good enough reason for a migration-path change. 'In 2000, U.S. roaming rates were just over 7 percent,' Gillott says. 'To build an entire network to satisfy the needs of percent is ridiculous.'

Vodafone executives all wanted Verizon Wireless' possible W-CDMA migration. The cdma2000 migration path for CDMA mobile networks is not compatible with wideband CDMA, which is intended for GSM-based networks. The bulk of European carriers operate GSM wireless systems.

If Verizon moved to W-CDMA, the companies could offer subscribers a cohesive global network, and more importantly, Vodafone would not have to pay roaming fees to newly merged archrival Deutsche Telekom/VoiceStream when its European customers travel in the United States.

 



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