CDMA2000 1x EV-DO launches in two U.S. markets have shoved its rival protocol to the margin. But EDGE promoters say they aren’t worried.
Tapping into the footprint of EDGE’s predecessor GSM/GPRS, which accounts for the preponderance of subscribers around the world, EDGE could be on its way to capture center stage. In the United States, Cingular Wireless L.L.C., the second-largest operator, has launched a service in the Indianapolis area as the first step to swarm its networks across the country. AT&T Wireless Services Inc. plans to launch this fall, while T-Mobile USA hopes to unveil its EDGE services before the year ends.
As an answer to DO, EDGE will provide high-speed services such as MP3, video on demand, picture messaging, e-mail attachments and a slew of multimedia offerings.
“EDGE is going to enjoy great economy of scale,” remarked Chris Pearson, executive vice president of 3G Americas, which supports the EDGE air interface. Pearson said EDGE has secured operator commitments from 32 companies representing almost 100 million subscribers. Outside the Americas, 21 operators have committed to offer the services, including Europe, Asia and the Middle East.
In Europe, where the uptake of the technology has received some skepticism, TeliaSonera blazed the trail with a launch, a step the company expects to enhance its migration to UMTS, the apotheosis of the technology journey.
“EDGE accelerates the development of mobile data services and complements other mobile technologies, including UMTS,” said Anders Igel, president and chief executive officer of TeliaSonera. “On the Swedish market, EDGE can be a complement and act as an alternative in certain areas.”
In Hong Kong, carrier CSL also launched EDGE services. L.M. Ericsson signed a $10 million contract to supply the EDGE network for Thai carrier AIS.
Depending on operators and devices, the download speed of the technology ranges from 80 kilobits per second to 125 kbps. Most operators have said migration to EDGE requires a minimal cost because it entails a software upgrade, the same requirements for the move from 1x to EV-DO technology. But the mathematics may not be the same for carriers like Cingular and AT&T Wireless, which had to do forklifts of their TDMA infrastructure to install GSM on the way to UMTS. AT&T Wireless said the whole cost is $1 or $2 per pop on a nationwide basis.
“Each operator has to make their own decision on an upgrade path on technical and business grounds,” said Pearson, adding that the carriers had the option to go the CDMA path. “They are intelligent to do their own analysis of cost.”
Verizon launched its DO service without handsets, instead focusing on notebooks using slot cards. The target is the enterprise space, which it intends as the launching pad for the critical mass market that will require the use of handhelds.
Cingular’s launch also follows the trend of using notebooks. Analysts said speed is the principal lure for the EDGE service in the early going, hoping that users eventually will decide what applications and services will savor mass appeal.
“The biggest challenge, as we see it, is whether or not the operators can allocate enough EDGE time slots to data users to ensure that the measured EDGE data rates at the user level are within the range promised by the operators,” wrote Deutsche Bank in a report, Signals To Noise. “The jury is still out and hopefully EDGE will not get hung up to dry.”
The report said AT&T Wireless will provide the real test when it launches its program. Critics have said EDGE has limitations in that its coverage does not extend beyond metropolitan areas, adding that this gives DO the edge.
“This is a misunderstanding,” said Lars Nilsson, director of business strategy at Ericsson, explaining that this happens with any technology, including DO, as users get to the edge the cell.
Nilsson said AT&T Wireless is ready to go in the Dallas area, where Ericsson provided the gear for the network.
One difference between DO and EDGE is that the former is dedicated to pure data on its spectrum, while EDGE uses the same spectrum for voice and data.
Nilsson said only the Nokia 6200 device is ready for EDGE, and both AT&T Wireless and Cingular have it on the market, although AT&T Wireless has not launched its service. Motorola Inc. has promised to roll out its device before the end of the year. Cingular said it will release new devices by the end of this year and into next year, according to spokeswoman Jessica Reigle.
