Is CDMA cell phone technology already dead? Analysts disagree

By Jacqueline Emigh | Published August 22, 2008, 4:39 PM

In separate reports issued this week, one prominent analyst firm proclaimed the impending death of CDMA cellular technology, while another touted its resurgence. So which is it?

Analyst firm Dell'Oro Group has declared CDMA -- for many years a widely used mobile communications standard, especially in North America -- already "dead."

Scott Siegler, a mobile infrastructure analyst at Dell'Oro, bases these claims on a slowdown in spending on CDMA by Sprint Nextel and Verizon Wireless, as these wireless operators pour more investments into higher capacity GSM technologies.

"As a result of this contraction in North America, North America's share of the CDMA market fell to [an] approximately two-thirds share, from [an] over three-quarters share in the second quarter last year. Growth in Asia Pacific, particularly in India, helped to offset these declines," Siegler said.

"However, we believe the region will experience declines in the second half of the year, as we expect [operators in the Asia Pacific] to begin to focus more capital toward their GSM networks."

In complete contrast, ABI Research analyst Khor Hwai Lin suggests that the investment of CDMA operators in GSM types of technologies such as EV-DO Rev. A and Rev. B really represents an upgrade to existing CDMA networks.

"The increased support for LTE from incumbent CDMA operators does not imply the imminent death of EV-DO Rev. A and B, because LTE is addressing different market needs than 3G (third generation) [wireless]," said the ABI analyst.

Like WiMAX, and HSPA+, LTE is regarded as a fourth generation (4G) wireless technology. "HSPA+ will contest with LTE and mobile WiMAX in the mobile broadband space," according to Jake Saunders, ATI's Asia-Pacific VP. As previously reported in BetaNews, in the North American market, Sprint, Clearwire, and five investment partners are now making heavy investments into WiMAX, too. Verizon Wireless and AT&T are doing likewise with LTE. Yet in any case, some mobile equipment manufacturers don't seem to believe that CDMA is on its way out any time soon. This week, for example, China-based ZTE introduced a "full-featured CDMA AWS flip phone" into the US market. Meanwhile, Motorola rolled out a "Push-To-Talk Over Cellular (PoC) solution," describing the new technology as bring "optimized for CDMA 1.x networks equipped with EV-DO Rev. A data capability."

Comments

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as a consumer, i don't care about this prediction. as i know it's all just about business. whoever doing business on this market as long as they play for customer satisfaction purposed, it would be just fine for me..
CMIIW...
^_^

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It never ends, every few years I need to go buy new phones (and everything that goes with em). this Fing industry is a pain in the assets. and is filling landfills yearly with all these crap phones. I don't want to use the freaking internet or check my email or IM people on a computer from my cell phone. I just want a phone that I can call people on if I need too and that is it. Yet because of network modifications every year I am constantly being told I have to get a more and more expensive phone when I don't want all that garbage. Whats wrong with having a simple Basic freaking phone? Worse a phone you prob paid $200 or $300 for last year you will not even be able to give way now cause the network changed. So once more Hundreds of dollars in phones batteries accessories all in the trash to fill a landfill.

IN the past 10 years I have spent well over $5000 in cell phones. More if you count the families phones, cause the children get off on the gadgets. And I do mean GET OFF. Sic teens!

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I agree, what happened to being basic. I understand the need to improve things and some have a use for all that extra stuff but make it environmentally friendly. Force people to turn in their old phones, etc.
Most people only need a basic phone, they use the fancy features rarely if at all, but are just drones.

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CDMA is going to die, will it be in 1 year, 2 years, or 5 years who knows. The U.S. should be on one network (hell the world should be on one network), with free roaming one will rarely get a dropped call.

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Technically speaking, same applies to GSM and iDEN and any other 3G or bellow technology.

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