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IP: Vodafone in the 3G saddle (mazl'tov)


From: David Farber <dave () farber net>
Date: Wed, 06 Jun 2001 18:56:42 -0400



From: "Janos Gereben" <janos451 () earthlink net>

Vodafone footprint overrides Verizon's 3G choice
Ray Hegarty - www.the451.com

New York - It looks as if Verizon Wireless parent Vodafone has won
the battle over the US wireless carriers' long-term 3G choice. At
its analyst briefing day in New York on Tuesday, Vodafone said it
would encourage its US affiliate Verizon to switch to W-CDMA.
Verizon Wireless is jointly owned by Vodafone and Verizon
Communications (recently formed by the merger of Bell Atlantic and
GTE).

Verizon had previously indicated it preferred 3G cdma2000 1xEV
technology - 1xEV is compatible with Verizon's existing base
station deployment and considered cheaper to deploy. But
Vodafone's global 3G W-CDMA footprint ambitions sit uneasily with
Verizon's more domestic business concerns. Verizon's switch to
W-CDMA will be a blow to the US cdma2000 developer and
manufacturing community, particularly Qualcomm. Verizon Wireless
claims to be the largest wireless communications provider in the
US, with 27.5 million wireless customers.

Jim Gerace, Verizon Wireless spokesman for corporate strategy and
policy, claimed Wednesday that Verizon has always said its
long-term migration path to 3G technology is predicated on the
flexibility to deploy different standards. "We still have that
[1xEV] option," he said. Perhaps, but the tone of Verizon's
comments toward W-CDMA has changed noticeably since March.

"It has always been our intention to take advantage of the
international footprint, and that fits more comfortably with
W-CDMA," said Gerace.

Back in March, at CTIA 2001 in Las Vegas, Verizon CTO Richard
Lynch had said that Verizon was opting for cdma2000 because "we
don't have to change the infrastructure. With less-compatible
technologies, such as W-CDMA, there is no compatibility. Cdma2000
gives us backwards and forwards compatibility of technology."

Although Gerace admitted that international roaming is a very
small part of the company's business today, he claimed that "even
among North America customers, flexibility is essential," and that
includes roaming. By choosing W-CDMA, Verizon can avoid paying a
competitor for US roaming from Europe and Asia.

For now, Verizon remains committed to rolling out 2.5G cdma2000
1XRTT, beginning in the fourth quarter. Lucent recently won a $5bn
deal to supply cdma2000 1X equipment for Verizon's coast-to-coast
US network. Gerace said the upgrade would potentially double the
existing network's voice capacity and increase data transmission
speeds by nearly 10 times, to 144Kbps.

Gerace believes that cdma2000 1XRTT will meet the majority of
users' needs for the foreseeable future. "For the average user,
144Kbps works very well," he said. The question of what 3G
technology Verizon will employ is still academic at this point -
we haven't even rolled out 2.5G yet, he said.

================
Janos Gereben/SF, CA
janos451 () earthlink net



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