CDMA evolves for data: Asian operators lead the pack

In the same region, one carrier leaps toward testing 384 kb/s data transmission speeds to support mobile multimedia applications while another proudly launches one of the first 14.4 kb/s real-life code division multiple access data services. Although the two networks serve neighboring countries, their data speeds are worlds apart.

Forging ahead with wideband CDMA experiments, NTT DoCoMo launched a trial system based on Ericsson equipment. The 384 kb/s network will support packet- and circuit-switched data for voice, video, Internet, digital photograph transmission and traditional mobile data applications. NTT DoCoMo intends to share the results of this trial and future infrastructure vendor trials with interested operators worldwide.

In addition to allowing multimedia applications, W-CDMA will relieve NTT DoCoMo of its current capacity issues and allow it to offer data rates comparable with those of competitors.

Although a worldwide standard for third generation networks has yet to be defined, operators are clamoring to test 3G systems. "If we had to respond to all the requests for trial systems, we would very soon be out of business," said Ake Persson, vice president of marketing and sales for Ericsson Radio Systems.

Vendors are spending significant time and money developing trial systems, perhaps to woo the analyst community, said Perry LaForge, executive director of the CDMA Development Group. "There's a lot of posturing on the vendors' part," he said.

While carriers look ahead to data speeds as high as 384 kb/s, many currently don't offer more than 9.6 kb/s. LG Telecom has become one of the first operators worldwide to implement 14.4 kb/s data transmission speeds on a CDMA network.

LG Telecom began implementing the IS-658 and IS-707 standards for data transmission in January 1997. After commercial testing of the circuit-switched service, it was launched late last month.

U.S. operators lag behind LG Telecom in rolling out increased data rates possibly because of interconnection complications. "We have an easier situation in Korea because we have nationwide coverage," said Youn-Kwan Kim, executive director for LG Telecom.

U.S. wireless operators may not feel the urgency to migrate to 3G because they have fewer capacity issues with the availability of PCS frequencies than their worldwide counterparts, said Naqi Jaffery, wireless analyst for Dataquest. U.S. operators will enhance existing networks to respond to market demands for data rates, which will likely result in pockets of higher-speed data rates throughout the country.

The CDMA Development Group soon will release a migration path for CDMA operators to progressively add higher data transmission rates before 2002 when U.S. operators are expected to launch 3G systems commercially. By early 1999, LaForge expects to see 64 kb/s transmission speeds in the U.S. based on today's specifications. By 2000 this rate may reach 384 kb/s in mobile environments and 1.5 Mb/s in limited mobility environments.

Hand-held wireless devices that take advantage of higher data speeds on CDMA networks are beginning to appear. By midsummer, a major U.S. operator is expected to begin selling Samsung's combination personal digital assistant and phone, the SCS-100/200.

"We don't anticipate it being a high-volume device," said Carlton Peyton, vice president of sales for Samsung. Rather, the product should attract a niche audience and is attractive because it works with Windows CE just like a desktop computer.

While these devices offer applications that make sense for higher- speed data networks, really useful applications for 3G speeds have yet to be developed.

"One has to ask, 'If you're going to implement these, is there a market?'" Jaffery said. Despite all the discussion on next generation systems, very little evidence supports consumer demand for applications that require 3G networks.

UWCC TALLIES TDMA SUBSCRIBERS Based on numbers contributed by carriers, the Universal Wireless Communications Consortium reported 9.2 million TDMA subscribers worldwide at the end of 1997, with 4 million of those in North America. The UWCC anticipates 18.5 million subscribers worldwide by end of 1998 and 115 million by the end of 2002.

NORTEL BUILDS FOR UNITED STATES CELLULAR Northern Telecom will build CDMA and TDMA networks for United States Cellular worth more than $400 million over four years. The first market to be built out under the contract will be a TDMA network in Milwaukee.