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NEWS
Issue #2001 - 13 (Mar. 2001)

(Updated on Mar. 28, 2001)

TECHNOLOGY

Qualcomm Releases White Paper on the Economics of Wireless Data

With wireless service operators planning and implementing upgrades their 2G networks, QUALCOMM has released a white paper entitled the Economics of Wireless Data’ that acts like a guide through the 3G landscape, but with a definite slant, of course, toward CDMA technologies.

The authors of the paper set out their intentions in the Introduction and Executive Summary: The paper presents a methodology for understanding the differentiation in competitive advantage that operators will have based on their 3G choice. The paper also explains QUALCOMM’s forecast for wireless data demand.

The paper is convincing in its arguments for voice and data networks and what economic benefits can be expected, but its economic forecasts could afford more impartial discussion.

Highlights of QUALCOMM’s Forecasts

  • Mobile wireless data demand will exceed 200 megabytes per user per month by 2006, based on enhanced data rate capabilities and improvements in wireless devices and applications.
  • With 5 MHZ available for data traffic, the network cost to deliver traffic will fall from several dollars per megabyte utilizing 2G technologies to less than $0.03 using cdma2000 1xEV; less than $0.07 for cdma 2000 1x and WCMA; and about $0.042 for GPRS.
  • Users consuming 200 megabytes of data per month would cost a cdma2000 1xEV operator $4 per month in expenses versus $12 per moth with cdma2000 1X, $14 per month with WCMDA, and $83 per month with GPRS.

For more information: http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdf

Mobileinfo Comments and Advisory:  This is an interesting paper. We would like to dig into it before we accept their numbers. We hope that this can translate into consumer prices that show the same ratios. We are not hopeful of that. There are more components to pricing than the hardware supplied by a network infrastructure vendor.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.


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