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FC: Another take on CDMA vs. GSM, from Robert Clark


From: Declan McCullagh <declan () well com>
Date: Mon, 17 Jan 2000 11:37:38 -0500

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Date: Mon, 17 Jan 2000 15:21:03 +0800
From: robert clark <rclark () telecomasia net>
Organization: wireless asia
To: declan () well com
Subject: Re: FC: More on Europe, US technology boom, and wireless standards

Declan
it's disappointing to read this pretty shallow analysis. the cdma-gsm argument
has become as wearisome as the old mac vs ibm brouhaha and just as pointless. a
few comments:

* CDMA doesn't have 50m customers, it is closer to 40m, most of these in Korea,
Japan and the US.

* It's true that GSM proponents have continually trashed CDMA, but that is
normal if unfortunate for any startup against billion dollar enterprises. what
is not normal is the degree of US political leverage Qualcomm has behind it. the start of CDMA in Taiwan and Australia (and probably Japan) has been as a direct
result of high level US lobbying. The standout case was China, where Beijing
clearly linked the entry of CDMA into the country to its US WTO deal.

* both the CDMA and the GSM versions of next generation technology have
substantial backing from existing operators and vendors, so it's a little early
to be talking about faces blowing up. if anything GSM has the edge because it
has a current customer base of around 250m and is well established in Europe and
Asia, in particular India and China.

* The success of GSM is something of a fluke: the US industry in the early 90s
was in some disarray, the japanese were unable to persuade anyone to take their
PDC technology.  Just for once, the European way worked.

* It's laughable that anyone would argue that GSM markets are intrinsically
'behind" CDMA markets. First, GSM markets such as Finland, HongKong and Japan
are well advanced  in new services - mobile banking, ticket booking, and other
info services have been a fact of life for 12 months and more. US cellcos come out to Asia to see how it is done. Second, the high bandwidth that is about to
come to CDMA is about to come to GSM in a similar timeframe.

When it gets down to the technology, there's not much between the two. most
experts agree CDMA is much better on the radio side - bigger capacity, less
interference. GSM's strength is its core network.  GSM has the SIM card, which
provides more functionality and is convenient (eg, change your phone, but keep
your phone numbers and settings). Above all, you can take a GSM phone to
virtually anywhere in the world and keep talking. CDMA is still at the crawling
stage when it comes to roaming.

Let the market go figure which is better.




Robert Clark
Editor
Wireless Asia
Hong Kong



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