Qualcomm to launch Australian 3G network

Qualcomm, the US telecommunications manufacturer, has announced that it will deploy a commercial 3G network in Australia.

The company won a 3G license from the Australian government for just $79m, a fraction of the mutli-billion dollar amounts paid by network operators for European licenses. Qualcomm plans to use its Australian 3G network to showcase its cdma2000 1x/1xEV technology, a rival to the more widely adopted W-CDMA standard for 3G networks.

CDMA2000 offers potential data rates of up to 2.4 Mbs and can be installed on top of existing 2G CDMA network infrastructure. Qualcomm believes cdma2000 will be significantly cheaper to deploy than W-CDMA and provide far cheaper data transfer at around $4 per 200 Mb versus $14 for W-CDMA networks. Australian networks currently offer a combination of CDMA and GSM coverage to a population of around 19m people, approximately 10m of which use mobile telephony services. Qualcomm is planning to start commercial service in 2002, but there are concerns that cdma2000 will not be available in time and whether or not Qualcomm, a manufacturer, will have the expertise to compete with dedicated service providers.

"QUALCOMM is a strong believer in the growth prospects of CDMA in the Australian market and entered the latest auctions committed to acquiring appropriate spectrum to support a high-quality, high-capacity cdma2000 1x/1xEV system," commented Dr. Irwin Mark Jacobs, Chairman and CEO, QUALCOMM. "cdma2000 1x and 1xEV combine time-to-market and cost advantages with the highest performance and quality for voice and broadband data. With strong demand for mobile and internet services, the Australian market presents a significant opportunity for early deployment of 3G high speed wireless, always-on internet services. QUALCOMM's successful participation in numerous spectrum auctions in the past has resulted in nationwide CDMA networks being deployed in other countries, such as Mexico, Chile and Brazil."