Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm: 3G is a reality in LatAm
[November 18, 2005]


http://www.tmcnet.com/usubmit/2005/nov/1208189.htm

3G technology in Latin America is already a reality through CDMA, even though GSM platform providers say there is no such implementation in the region, Carlos Rivera business development VP for Latin America at US mobile technology firm Qualcomm (Nasdaq: QCOM), told BNamericas.



The stance has the support of Carlos Carnevali, Latin America and Caribbean region VP for US technology vendor Cisco Systems (Nasdaq: CSCO), who said this week that 3G is already here thanks in part to mobile operators'' adoption of IP platforms.

"Those companies that are not selling 3G say it has not been implemented in the region, but the ITU [International Telecommunications Union] has set five standards for 3G technology, three of which are based in CDMA technologies," Rivera said.

ITU has approved a family of five standards that meet IMT-2000 services criteria, more commonly known as 3G. These standards are WCDMA, CDMA2000 and TD-SCDMA, based on CDMA technology, and UWC-136 and DECT+, based on GSM technology.

There are already 28 CDMA2000 networks in the region, within 19 countries, and WCDMA is expected to be the upgrade path as much for GSM/EDGE operators as for CDMA operators. Some operators using CDMA 3G technology are Smartcom in Chile, Telefnica Mviles in 10 countries, Alegro PCS in Ecuador, Telgua in Guatemala, Telcel in Mexico, Movilnet in Venezuela, Vivo in Brazil and Ola in Colombia.

New projects related to CDMA 3G networks include Bahamas Telecommunications Company, one in El Salvador, two in Trinidad & Tobago and another one in Venezuela. There is also an EVDO project in the Cayman Islands.

THE COMPETITOR''S SIDE

Wibe Wagemans, marketing director for Latin America at the multimedia division of Finnish cell phone manufacturer Nokia (NYSE: NOK), recently confirmed, "our competitors and Nokia itself are already selling 3G products, in Chile, for example."

However, Nokia feels that in many cases people can only use these devices when they travel, because the local infrastructure is not fully in place, and the company believes 3G technology is unlikely to take off in the region during 2006.

According to Rivera, when GSM operators talk about 3G they are talking about this technology running over GSM networks, which is, by all accounts the dominant technology in Latin America, mostly because of the prices of the terminals, which are cheaper compared to CDMA terminals.

The CDMA Development Group (CDG) has also said CDMA is the "pure" evolution to 3G, while GSM is a delay in reaching 3G.

3G BENEFITS WITH CDMA

For 3G services, CDMA2000 offers an efficient use of radio spectrum, enabling wireless networks to handle more users simultaneously and it is able to provide higher data transfer speeds and to support advanced multimedia services.

There are three large benefits involving 3G technology, according to Rivera. 3G offers a bandwidth equivalent to DSL or cable modem services, providing up to 2,400Kbps.

"Besides, there is greater capacity. [Compared to] a second generation GSM radio station, a CDMA2000 or WCDMA base station is able to provide services to four times more users, so the costs of providing a minute [of mobile telephony] are considerably reduced," Rivera said.

A third benefit is the coverage given. According to Rivera, in many cities there is no DSL or cable modem coverage or the service does not go beyond the largest cities and there are not that many hotspots. "By deploying a 3G network, you get wireless high speed broadband with mobile coverage, which is extensive and at a low [build out] cost," he added.

"In Qualcomm, we facilitate the transition to 3G by bringing new advanced products and services. We help in each level of the value chain and we work with Latin American operators to teach them what has been done in other countries, such as Japan, Korea and the US, to understand the benefits and learn from their mistakes so they are not repeated" Rivera said.