News
Issue #2002 - 38 (October 2002)
(Updated Oct. 8, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

AT&T Wireless Sees No Demand for W-CDMA

PARIS (Reuters) - AT&T Wireless Services Inc., the No. 3 U.S. wireless telephone company, on Thursday said it was seeing no demand for the long anticipated high-speed wireless service based on the WCDMA format.

"We don't see anything in the market driving demand for Wideband CDMA," said Leo Nikkari, AT&T Wireless' director of 3G industry relations. "I don't see anything pushing us to an early WCDMA launch," he said at the UMTS and Mobile Internet conference in Paris.

WCDMA, or Wideband Code Division Multiple Access, promises data speeds of about 2 megabits per second, which is more than 13 times faster than AT&T Wireless's current high-speed network that allows customers to easily check e-mail, surf the Web, and download applications.

The technology standard, which is also known as UMTS (Universal Mobile Communications System), is supposed to allow users to perform many of the functions of a computer via mobile devices as well as send and view video, but has been slow to take off.

Japan's NTT DoCoMo Inc. 9437.T , which launched WCDMA a year ago, has been struggling to recruit users due to limited coverage areas and poor battery life on the phones.

In Europe, the roll-out of WCDMA networks has been plagued by delays with cash-strapped operators choosing to focus instead on repairing their battered balance sheets after spending billions of euros on wireless licenses in 2000. Still, Mark Siegel, spokesman for AT&T Wireless said, "We remain firmly committed to UMTS. It is our future." 

"The demand for data application is certainly strong," he said, although he added, "It may not manifest itself as early as some of the industry's very optimistic predictions might have suggested." 
Siegel said AT&T Wireless plans to roll the high-speed service out over the next several years. AT&T Wireless is starting a trial of WCDMA service in Dallas with Ericsson network equipment later this year. 
Nikkari said in his presentation that "AT&T Wireless has four to five years to look at WCDMA." 
Nikkari said AT&T Wireless was on track to upgrade its current high-speed network based on GPRS (General Packet Radio Service) technology to EDGE (Enhanced Data for GSM Evolution) and launch an even higher-speed service next year.

GPRS and EDGE are advanced versions of GSM (Global System for Mobile Communications), the dominant wireless technology standard in the world. Nikkari said the company planned to stay with EDGE service until it sees evidence of demand for higher speed data particularly by businesses. 
"We're not going to bring it before we see a business case for it," he said. 

Nikkari said the company would likely roll out WCDMA first in big cities like New York and Los Angeles when it is ready to launch it. 

For more information: www.attws.com and www.reuters.com

MobileInfo Comments and Advisory:  AT&T is probably right in admitting that demand for W-CDMA is weak. In a depressed market, it continues to be challenging to justify huge investment on 3G. Japanese experience of picture exchange and Europe's limited success with wireless gaming will be difficult to take hold in USA, it appears. 

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