Nov. 20, 2006

Striking back at concerns over CDMA operators switching to GSM, the CDMA Development Group said it now counts 39 GSM operators that either have deployed or are deploying CDMA2000 networks for voice and data services.

The group attributed the move in part to carriers in emerging markets, noting that building a CDMA2000 network in the 450 MHz and 800 MHz frequency bands is significantly less expensive than deploying other wireless technologies in higher frequency bands.

The group said GSM operators in Eastern Europe, the Caribbean, Southeast Asia, Africa, India, Indonesia and the Middle East are deploying CDMA2000-based technology.

Perry LaForge, executive director of the CDG, explained, “CDMA2000’s voice clarity and broadband connectivity makes it ideal for emerging economies that want to increase their gross domestic production per capita.

Also, in today’s competitive market, 2G GSM operators are looking towards 3G CDMA2000 to provide service differentiation and improve their average revenue per user.”

The GSM Association was not immediately available for comment. The group promotes GSM technology and has previously discussed carriers moving from CDMA to GSM.

CDMA-based technology has had a hard time gaining momentum in emerging markets since it is typically more expensive than GSM network infrastructure.

However, CDMA backers have long claimed that CDMA technology offers a less expensive upgrade path as carriers morph their networks from 2G to 3G.

In addition, CDMA vendors have indicated that carriers’ operating costs can be reduced because CDMA networks require less spectrum and power than GSM-based networks due to the design of CDMA technology.

But purveyors of GSM technology played down the CDG’s pronouncements.

“There are approximately 340 million CDMAOne, CDMA2000 and CDMA 1xEVDO users in the world, compared to 2.1 billion GSM, GPRS, EDGE and 3GSM (W-CDMA) users today,” stated Mark Smith, spokesman for the GSM Association.

“The debate over which will be the global technology path is over.”

And 3G Americas’ Vick Livingston, director of marketing, said, “3G Americas is not aware of one GSM operator, of 700 commercial networks in 215 countries worldwide, that has abandoned GSM in favor of CDMA.”

Source: RCR News