Lucent debuts chip to hike mobile network capacity

Zardon · Dec 19, 2002, 07:35 AM

MURRAY HILL, N.J. (Reuters) - Lucent Technologies on Wednesday said it had introduced a chip that could increase the capacity of mobile networks so that phone companies could improve their services.

Phone companies have already spent billions of dollars upgrading their networks to offer higher reliability and faster wireless Internet access, but Lucent said its chip would double earlier improvements.

Lucent in a statement said the chips could be added to wireless network equipment known as base stations, which receive and transmit mobile phone calls, in networks based on the Code Division Multiple Access (CDMA) standard that companies including Verizon Wireless and Sprint PCS support.

Gartner Group analyst Ken Dulaney said that while the chip could boost mobile communications, its success would depend on consumer demand and the spending plans of companies that run CDMA networks

"The issue is not that you can't create more capacity in the CDMA system. The problem is if carriers have the money to spend on it or the demand," Dulaney said.

"Everybody's got their favorite ingredient for making the base station better so it will probably come down to them improving costs or the number of subscribers the base station can support at the same time," he added.

Shares of Lucent closed down 6 cents, or 4.38 percent, at $1.31 in Wednesday trade on the New York Stock Exchange.

Dec 19, 2002, 07:35 AM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Lucent debuts chip to hike mobile network capacity MURRAY HILL, N.J. (Reuters) - Lucent Technologies on Wednesday said it had introduced a chip that could increase the capacity of mobile networks so that phone companies could improve their services. Phone companies have already spent billions of dollars upgrading their networks to offer higher reliability and faster wireless Internet access, but Lucent said its chip would double earlier improvements. Lucent in a statement said the chips could be added to wireless network equipment known as base stations, which receive and transmit mobile phone calls, in networks based on the Code Division Multiple Access (CDMA) standard that companies including Verizon Wireless and Sprint PCS support. Gartner Group analyst Ken Dulaney said that while the chip could boost mobile communications, its success would depend on consumer demand and the spending plans of companies that run CDMA networks "The issue is not that you can't create more capacity in the CDMA system. The problem is if carriers have the money to spend on it or the demand," Dulaney said. "Everybody's got their favorite ingredient for making the base station better so it will probably come down to them improving costs or the number of subscribers the base station can support at the same time," he added. Shares of Lucent closed down 6 cents, or 4.38 percent, at $1.31 in Wednesday trade on the New York Stock Exchange.