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U S WEST IMPRESSED WITH HDR, BUT WAITS TO SEE DEMAND

U S West Wireless recently completed field tests of Qualcomm Inc.’s High Data Rate product, saying it was impressed with the solution, but didn’t indicate plans to deploy the technology commercially.

“We were able to show proof of the concept and that it does provide megabit transmission capability,” said Matt Sopcich, director of wireless data with U S West. “We’re continuing down a long path and looking at this type of service and other architectures that vendors are offering.”

U S West’s moves are indicative of ones most carriers are making. Operators are trying to figure out what the demand for data services will be and at what speed and cost.

“We really have to decide and figure out where our needs are best met between IXRTT, 3X and HDR,” said Keith Paglusch, senior vice president of operations with Sprint PCS, which plans to lab test the HDR solution until the end of the year and then field trial it next year. “We’ll get a better feel after we test it or trial it. By that time, we’ll have entered into the data market. We’ll get a good feel for whether we are seeing a requirement for dedicated data.”

Qualcomm said its HDR solution delivers high-speed Code Division Multiple Access wireless Internet access at peak data rates of up to 2.4 megabits per second. But unlike the agreed-upon 1XRTT solution-the first phase of third-generation cdmaOne networks that will provide enhanced voice and increased data transmission speed to about 115 kilobits per second-HDR requires carriers to dedicate a standard 1.25-megahertz channel solely to data. Qualcomm sees the solution as a complement to IXRTT.

U S West Wireless has teamed up with U S West Enterprise to look for a wireless technology that will allow it to offer Digital Subscriber Line-type services. Telecom players across the country are rushing to leverage their core strengths and position themselves to provide the “last-mile” access to businesses via cable networks, DSL or broadband wireless solutions.

“HDR is an opportunity that gets us into the space to offer DSL-type services up to megabit speeds,” said Sopcich. “It’s more economical and makes better business sense to deploy this option.”

Jeff Jacobs, Qualcomm’s senior vice president of corporate business development, said HDR technology is designed for the mobile, portable and fixed wireless market. U S West said its tests of the HDR solution indicate the technology does not allow for full mobile high-speed data access at this point.

“Right now it’s not a full mobile service,” said Sopcich. “It’s definitely among the lower mobility offerings from the technology that we are currently seeing … There is going to be a push to increase it to higher mobility. We’d love to see high mobility and high bandwidth.”

Qualcomm is positioning the technology as a solution for wireless operators, Internet service providers, cable companies and existing landline service providers. U.S. wireless operators are beginning to test demand for wireless local loop service as a second line. Bell Atlantic Corp. recently indicated it is testing WLL technology as an alternative to traditional landline telephone service for many of the company’s rural customers.

Canbra Telefonica S.A., a consortium comprised of Denver-based VeloCom- formerly WLL International Inc.-Bell Canada, Qualcomm and two Brazilian companies, is looking at using the HDR solution in a vast cdmaOne-based WLL network that it plans to construct across the northeastern region of Brazil and in the state of Sao Paulo. The HDR solution would give the consortium an advantage over landline companies that provide unreliable Internet access today.

“We’re encouraged by the data rates we are seeing,” said David Leonard, chief executive officer of VeloCom. “If we can achieve [the rates we are seeing], it will have an enormous impact on the data and Internet market. Customers in Brazil can’t get those rates on wireline today … We’re already building applications using HDR.”

Jacobs declined to say if other operators are testing the service. Carriers are hanging their hats on Internet access as the driver for wireless data services. How much demand for wireless Internet service remains to be seen.

“Our feeling is that no matter what access mode to the Internet you look at, users are going to use up that bandwidth,” said Jacobs. “Today, you don’t buy a laptop without a modem. In the future, all PDAs will have a modem in them. The question is: What are some of the wireless applications … Our belief is that the Internet is the application.”

Qualcomm’s goal is to license the technology to other vendors as well as sell ASICs incorporating HDR technology to handset vendors and make its own handsets using the HDR solution.

“One difference today is we don’t have an infrastructure business to drive the infrastructure,” said Jacobs. “We want to get the carriers excited about it and let them see the market opportunities. Once the carriers want to go, we believe they can help drive the manufacturers.”

Other vendors are said to be working on enhancements to the IXRTT structure to provide similar options to the HDR solution. Qualcomm said it plans to standardize HDR once it has a working system and a developed specification to bring to standards bodies. HDR technology could become commercially available by late 2000, about the same time frame vendors expect to have IXRTT equipment commercially available.

Costs of handsets should not be significantly more because the solution lies within the ASICs, said Jacobs. On the infrastructure side, cdmaOne carriers will have to add another channel card and T-1 lines to their networks.

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