Subject: [NEXTEL-1] CDMA Backers Urge Reconsideration Of Iraq Awards

From: [email-masked]
Date: Tue, 07 Oct 2003 15:50:59 -0400

CDMA Backers Urge Reconsideration Of Iraq Awards
BY MARK ROCKWELL
OCTOBER 7, 2003

The California-based trade group representing CDMA technology companies says it
regrets that Iraq's Ministry of Communications skipped CDMA-based bids for the
three-part national wireless network in the country and decided on GSM technology.

Iraq's Ministry of Communications' choice of three GSM-based carriers to build and
operate a national wireless system in the country "will serve to stifle
competition-driven innovation in the development of mobile services," says Perry
LaForge, executive director of the CDMA Development Group. The Ministry's "bias"
toward GSM was at the expense of strong bids submitted by CDMA-based consortia, he
contends.
LaForge called for Iraq to support a competitive market "populated by multiple
technologies in order to provide consumers with the best possible services." The
CDG also wants the Ministry of Communications to open up the national network to
multiple technologies, including CDMA. Short of that, LaForge says, the Ministry,
the Coalition Provisional Authority and the U.S. government should consider
opening up smaller, more specialized markets, such as local loop access, to CDMA
bidders.
CDG contends that GSM is a "2G" technology and is surpassed in capability by CDMA
2000.
Meanwhile, analysts say the choice of GSM boosted European vendors against more
U.S.-centric CDMA, but the value of the contracts resulting from the winning bids
is unclear.
Lehman Brothers analysts say the choice appears to give Alcatel and Siemens, both
associated with winning bidder Orascom, a shot in the arm. Both vendors signed
supply contracts this past July with Orascom to supply equipment for contracts in
the Middle East. Motorola, Nokia and Siemens are associated with Kuwait's MTC,
which is reportedly associated with winning bidder AtherTel in Iraq, while
Ericsson may gain due to its general positioning in the Middle East.

While the Iraqi orders are unlikely to have a significant impact on vendor
revenues given the overall size of the telecom market, all new revenue
opportunities are likely to be aggressively fought over given the current climate,
the analysts say.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=3&pubdate=10/07/03

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