Verizon Wireless Apparently Yields to Vodafone Pressure to Consider W-CDMA
By Jeanie Stokes
from the June 18, 2001 issue of Broadband Week
Verizon Wireless, the nation's largest cellular phone company, apparently is yielding to pressure from Vodafone Plc., its 45 percent owner, and is at least considering using W-CDMA technology as it rolls out third-generation high-speed mobile wireless services. Verizon, a CDMA carrier, in March signed a $5 billion deal with Lucent to build its next generation network based on CDMA2000 1X and 1X-EV platforms, and the U.S. company is sticking with those plans at present, says spokeswoman Andrea Linskey.
However, Linskey also says Verizon Wireless may consider W-CDMA to appease Vodafone, which intends to use W-CDMA for its European GSM-based wireless systems, Wireless Week reported.
If Verizon were to opt for a W-CDMA 3G platform, it would allow the creation of a more global network. More importantly, Vodafone wouldn't have to pay roaming fees to Deutsche Telekom/VoiceStream, when Vodafone's European customers use their GSM phones while traveling in the U.S.
Analysts questioned whether it was worth the cost of a W-CDMA build at Verizon to placate a small percent of roaming customers. Wideband-CDMA technology is intended for GSM networks and isn't a compatible migration path for networks using CDMA2000.
Vodafone and ILEC Verizon Communications Inc., which owns 55 percent of Verizon Wireless, remain hopeful of holding an initial public offering for the wireless company this year. The IPO was canceled in October due to poor market conditions.
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