| |
In The Race To 2.5G And 3G Networks, CDMA Currently Leads The Pack
in North America
September 5, 2002
The race to deploy more advanced wireless networks is in high
gear in North America, with next generation CDMA networks currently
leading.
While both TDMA/GSM and CDMA operators have picked up the pace
in recent months, it is the CDMA operators who currently dominate
this closely watched race. Extensive 2.5G coverage now exists in
both the US and Canada for the more than 55 million CDMA subscribers
in the region.
While CDMA2000 1X technology allows operators to roughly double
voice capacity and provide a theoretical data rate of 144 kbps,
the GSM operators should not be discounted just yet. Despite the
arduous transition from TDMA to GSM/GPRS, the next step for many
North American GSM operators is EDGE technology, a much less complex
transition. EDGE offers data rates more than double that of CDMA2000
1X. Of course, the CDMA camp has their answer to EDGE technology
with higher evolutions of CDMA2000. This constant jockeying for
dominance has heightened the awareness of both investors and consumers
alike as they have become increasingly interested in observing the
evolution of wireless technology.
"In North America, CDMA is clearly ahead, benefiting from its easier
upgrade path from 2G. However, we cannot discount the enormous presence
of GSM/GPRS networks in the rest of the world. In the end, spending
on upgrading these networks to WCDMA will dominate total 3G investments
over the next five years. It's important to differentiate between
first deployed and total deployed," declares Allied Business Intelligence
(ABI) Senior Analyst Edward Rerisi. He adds, "That said, we're still
closely examining the situation in Europe for signs of a further
delay in WCDMA."
In the end, the consumer will likely win as 3G coverage begins
to proliferate worldwide. Despite the current lead of CDMA networks
in the race to 3G, those based upon GSM technology will likely become
more ubiquitous. In a new study by ABI, findings indicate that spending
on GSM-based 3G networks, or WCDMA, will far exceed that of CDMA-based
networks. The report, entitled "Wireless Base Stations: Global Deployments
& Revenue for 2G, 2.5G and 3G Systems," reveals that WCDMA spending
will represent a staggering 78% of total 3G investments over the
next five years.
|
3G Motorola A920
