Telecom Mobile is in front

By Theresa Gattung

Friday 20th December 2002

The race between the CDMA technology used by Telecom Mobile and the GSM platform used by Vodafone has generated a lot of heat sometimes more heat than light (NBR, Dec 6).

Telecom Mobile's customers are benefiting from technology that is increasingly recognised internationally as the leader in the race to full 3G, or truly high broadband mobile services.

Mobile JetStream's technical lead is so far ahead of those of GSM-based GPRS it is not even disputed.

The launch of Telecom's Mobile JetStream upgrade to the 027 network this year created Australasia's first effective 3G network.

Customers are enjoying benefits such as remotely connecting their laptop or palm pilot to the office LAN (local area network) wherever they are, instantly transmitting pictures and rapidly accessing a huge range of information and options such as gaming, Xtra email and stock listings.

All of which is part of the reason why Telecom Mobile showed a strong quarterly performance in the latest results.

CDMA has attracted more than 220,000 of high-value customers since its launch in July last year and among them thousands are using the Mobile JetStream fast-data service. Telecom is achieving a 6% revenue uplift from customers upgrading from the 025 to 027 networks.

The 027 network now carries more than a third of our mobile traffic.

Performance like that helped Telecom Mobile to win two Tuanz awards this year for best mobile network and best telecommunications project.

CDMA is experiencing extremely strong growth internationally with more than 130 million subscribers.

Most importantly, the range of countries adopting CDMA is growing fast and includes China and India (together two billion population), South Korea, Hong Kong, Australia, Thailand, Indonesia, Japan, India, the US, Canada, South America and now perhaps most significantly parts of Europe, up until now a GSM monopoly.

In light of the high cost and technical difficulties GSM is facing in developing a viable 3G solution, many countries are opting to choose the 3G solution Telecom New Zealand already has in place.

Why? Because it's cost effective, it works, it has a great choice of handsets and applications and our customers are keen to adopt it.

An Ovum report published on November 30 noted countries such as the UK and France may enjoy 2G and 3G CDMA services within a couple of years because the technology upgrade path was the most cost effective.

Telstra in Australia is about to follow Telecom with its own CDMA 1X network, which it is promoting as "the first stage of Telstra's 3G implementation."

Telstra operates both GSM and CDMA networks and it has chosen to take its first 3G step on CDMA.

Telstra's head of mobile, David Thodey, when announcing Telstra's plan this month, said data speeds generated by the GSM so-called fast-data network were not up to the task.

"If you have to wait too long you just lose interest. 1XRTT just pushes you over that threshold to make the experience compelling."

Another Ovum report (November 25) noted many GSM upgrade plans were beset by delays and confusion, but "the CDMA world has been surging forward with CDMA2000 1X deployments, and generating mountains of publicity about the huge subscriber base, new services and positive effect on revenues of this technology."

I want to put right the purported Qualcom comments that, outside the US and Korea, CDMA is dead.

I understand Qualcomm itself is putting the record straight on that one, with an assurance the company sees a rapidly growing future worldwide for CDMA.

Telecom Mobile is confident it will preserve its lead in the mobile market in large part through the attractions of CDMA-based fast-data technology.

Only Telecom can offer customers a fully integrated seamless data service using fixed and mobile broadband networks with unmatched security, speed and reach.

Theresa Gattung is chief executive of Telecom New Zealand

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