One of the largest wireless companies in Latin America is considering a technology flip for the next generation.
Sources close to BellSouth International Inc. say the carrier wants to convert TDMA systems in its Latin American markets to CDMA-based 1XRTT technology, a third-generation standard offering high-speed data services and additional voice capacity.
A BellSouth spokesman declined to comment on whether the carrier has made a final decision, but indicated that “CDMA is definitely an alternative.”
Other sources close to the company say BellSouth has made the decision to change over Chile, Peru and Colombia and is preparing to select a vendor. BellSouth will study the prospect of the technology in Brazil, Ecuador and Panama.
The carrier already operates a CDMA system in Argentina and Venezuela and will turn on CDMA service in Guatemala shortly. Sources say BellSouth’s decision is an issue of which network it wants to run with for the next generation.
The 3G migration strategy for TDMA technology-the dominant standard in Latin America-is the EDGE standard. It won’t become commercially ready until late 2002. Some CDMA operators in South Korea are deploying 1X technology by the end of this year, while U.S. carriers have deployment plans for mid-2001.
Analysts also question whether major handset vendors are dedicated to producing EDGE/TDMA mobile phones, though major TDMA operator AT&T Wireless Services says announcements are forthcoming.
“Sales volumes of these handsets will be much lower, and thus more expensive,” Bob Egan, research director with Gartner Group, noted in a recent report.
TDMA and GSM technology have the same migration plan to EDGE technology, but major carriers in Europe haven’t publicly voiced their interest in deploying the technology at this point. If the majority of European carriers don’t choose the technology, analysts say TDMA operators will lose the global economies of scale they are seeking. TDMA advocates insist it’s too early to tell what operators will choose since auction processes in Europe have just begun.
The data market also is unproven at this point. An investment in EDGE technology is an investment in the high-speed data market, while an investment in 1X technology gives operators extra voice capacity along with higher speed data services, say experts.
Spain’s Telefonica Moviles also has considered switching its CDMA and TDMA Latin American properties to GSM technology. While Latin American newspapers are reporting this change, Telefonica denies it.
“The decision was clear. We’re not going to change to GSM,” said a Telefonica spokesman. “We’ll keep working with those technologies until IMT-2000 comes.”
