Chinook Wireless to Replace CDMA w/ GSM Network

That is a step backwards technology wise.

 

Why would they want to downgrade to GSM?

 

See 1.8 Billion users, and Global capablility.

 

But they are building out a regular ole GSM network. Isnt GSM getting to be a dead technology, just like CDMA? Why transition at this point.

 

They will probably go to Wcdma/umts just like Telstra, and Telfonica. Its just a matter of waiting for the phones to come out. So they have to convert their core network first, then use wcdma as the air interface.

 

Montana is going to have all 1.8 billion users visit? Wow.

 

Many here are obviously misinformed. A regular GSM network is not just about the 2G air interface and world roaming. It is most importantly about the flexibility of the core network's interoperability with the upcoming 3G future and the advantages that offer a broader phone selection. It means the carrier can sign more deals with more phone manufacturers and they can offer more phone models to their customers. If many carriers are making this move, they can't be wrong.

 

GSM is not the news here, it's where is Chinook getting the money for this? This makes absolutely no economic sense unless this is part of some other unknown deal. Chinook has so few customers to begin with, and a switch to GSM would not only NOT attract any new customers, it would also involve an expense in replacing customer handsets.

Pardon my skepticism, but I can think of only ONE customer in this country who actually wants to use this new network, and he is a T-Mobile customer who just wants to ROAM there. Even the existing Cellular networks are making minimal investments in MT, and even Sprint and T-mobile contracted out their roaming buildout in the area to Western Wireless (now Alltel).

What am I missing? An MT trust-fund baby? A backwoods launch of some new untested service? A 'friend' of Nokia helping out the Fins? Where's the logic? Where's the money?

 

gsm is far better.

 

take your blinders off.

 

That is your own opinion, walkguru. You think GSM is better, larry thinks CDMA is better. Both have its advantages or disadvantages but just because someone disagrees with your opinion, they have to take their blinders off? I think he has every right to have his own opinion, just like you do.

 

It will be a pricy migration for their own few customers to switch handsets, so have the new network infrastructure built, etc. but roaming wise, unless Cingular and T-Mobile prefer them over ALLTEL's GSM network, I highly doubt they will see a lot of roamers, because from what I know ALLTEL already serves everywhere their new GSM network will.

 

Let's use some objectivity, shall we? ...lol...

I think Bill hit the nail on the head. What is motivating Chinook Wireless to pursue this? Not some idealistic "GSM is better" argument - that is for guys like us to argue about. The only reason is that they think it will help their bottom line.

And then, the question arises - how is this going to help Chinook's bottom line. The only thing I can think about is roaming revenue - are they thinking that a) they stand to make more revenue from GSM carriers that may not have licenses in Montana (and I have not checked on whether either of the majors are suffering in this regard), or b) they have done market research that Montanans are really clamoring for easy international roaming with GSM (not to suggest that Montanans are parochial, but I seriously doubt this as the reason..lol).

So, it is a puzzle as to what the business model is that is driving this.

 

you dont see me saying cdma is a downgrade to gsm. some of you guys

 

the better is what provoked that response.:loony:

 

I think the point that some folks are making is technically correct - GSM is an older technology compared to CDMA, so this conversion can only be considered forward progress to the extent that it allows the carrier to implement 3G (UMTS/HSDPA).

 

They are both newer than GSM. GSM specs were defined in 1990 with the first commercial network coming on line in 1991. CDMA IS-95 specs were ratified by CTIA in 1993 with the first networks coming online in 1995-96.

 

OK... fine... lol... CDMA2000 went live in Japan in 2002, EDGE in 2003. I would not rate EDGE newer than CDMA2000 based on that.

 

Well, it looks like they are borrowing $30 million to finance this change.

http://www.danielsonline.com/capform/index.html

 

I was talking (obviously) about CDMA2000 1XRTT, i.e. CDMA IS-2000. 1X-EVDO obviously came much later.

 

Currently, GSM is very limited in Montana. ALLTEL (formerly WWCA) operates a GSM overlay on their CDMA network, but this coverage doesn't overlap their entire network. Also, since they're the only GSM provider in the state, their rates are probably not very low.

Meanwhile, Chinook doesn't have favorable roaming agreements with the CDMA carriers. Sprint is the only national CDMA carrier I know of that even has them in their PRL, and they're prioritized below both ALLTEL and VZW. I still managed to roam on their network on my way to Yellowstone last year, but it was a fluke.

So, put yourself in their position. You're sitting on a CDMA IS-95 network that you need to upgrade. You can deploy GSM and have a good chance at competing with ALLTEL for Cingular and T-Mobile roaming revenue, or you can upgrade to CDMA2000 and fight with both ALLTEL and Verizon for roaming revenue. And I'll point out there is no law that says you can't split the spectrum, deploy a GSM overlay, and keep the CDMA IS-95 gear in place for your existing customers and the (very) occasional Sprint roamer. You'd be able to serve roamers right away, and migrate your customers to GSM as part of the regular handset upgrade cycle. Oh, and Nokia will float you a loan on favorable terms to deploy their gear--no money down, and you pay for it with the steady flow of roaming revenue! Note that you probably won't need many (if any) additional towers since the tower spacing of the existing network is already optimized for PCS frequencies. In Montana, capacity is unlikely to be a major consideration.

Personally, I know what I'd do. If Chinook ends up with a network looking like what I'm envisioning, I'll think they're pretty smart.

 

I agree that ALLTEL's CDMA/GSM overlay probably isn't complete yet in Montana. WWCA still had huge portions of AMPS only coverage when the takeover took place so I'm sure it will take them a while to overlay that network.
You do make some good points about the roaming revenue. I think that Verizon has them in their PRLs too but I'm not positive, but they certainly are below ALLTEL in priority. Chinook's coverage will not be as good as ALLTEL after both companies do the overlays, and unless they provide cheaper roaming rates to Cingular &T-Mobile than ALLTEL I doubt a lot of people will land on them.

 

I fully expect Chinook to offer lower roaming rates to GSM carriers than ALLTEL, and I also expect better quality GSM coverage in many places. I used the WWCA GSM overlay last year when I visited Yellowstone, and the experience was about the same as Sprint's CDMA1900 MVNO-style network there (unfortunately, not very good).

Cheaper rates, better coverage, it'd be a no-brainer for GSM carriers. I'm sure they'll still keep ALLTEL as a roaming partner, but they'll probably put Chinook above ALLTEL in priority.