While Global System for Mobile communications technology networks currently have more subscribers, technical and competitive advantages will propel Code Division Multiple Access into a market-leading position by early 2003, concludes a recent study by Datacomm Research Co.
The 208-page “CDMA Wireless Business Opportunities” challenges the assumptions that “GSM’s spectacular growth in Europe will be replicated in other regions of the globe,” and that the U.S. wireless industry “will continue its snail’s pace migration to digital.”
More than 60 percent of existing and new GSM subscribers come from western Europe, where growth is expected to slow, while CDMA is better-positioned in North America, Asia and Latin America and offers a more desirable solution for fixed and rural applications-which are crucial requirements in developing countries, said Datacomm. Higher capacity-two to four times GSM capacity-and a larger cell radius make CDMA preferable for wireless local loop applications, said Datacomm.
The World Trade Organization Agreement may bring to an end government technology mandates that have kept CDMA from entering dozens of markets, and CDMA is being considered for use as a personal communications services technology in countries that previously had standardized GSM. However, Qualcomm Inc. said it conducted a succesful technology trial with Vodafone Group plc in Great Britain to overlay CDMA on a GSM network.
