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Moto Linked to Verizon EV-DO

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LR Mobile News Analysis
Light Reading
7/22/2004

Motorola Inc. (NYSE: MOT) is reported to be shipping CDMA2000 1xEV-DO kit to Verizon Wireless, following the carrier's earlier vendor deals with Lucent Technologies Inc. (NYSE: LU) and Nortel Networks Ltd. (NYSE/Toronto: NT)

In a financial report released this week detailing Motorola's strong second-quarter sales figures, analysts at Lehman Brothers note that "North America was particularly strong this quarter on what appears to be some initial CDMA 1xEV-DO shipments to Verizon" (see Moto Ups Q2 Sales).

A spokesman for Motorola is unable to confirm that shipment has commenced, but admits that "Motorola expects to be an EV-DO supplier in the markets served by Motorola CDMA 1x infrastructure" (see Moto Goes EV-DO).

Verizon spokesman Jeffrey Nelson confirmed that Motorola is a supplier of the carrier's 1x network, but stressed that to date only Lucent and Nortel have been announced as the carrier's EV-DO network vendors (see Verizon Picks Lucent, Nortel).

Analysts believe Motorola is well placed to grab a slice of Verizon's EV-DO pie. "Since most CDMA2000 products are relatively easily upgraded to support EV-DO, it would be logical to expect that Motorola will get a piece of the Verizon DO business," comments Peter Jarich at Current Analysis.

The EV-DO upgrade to the carrier's CDMA 1xRTT system largely involves software upgrades delivered via new cards for current base stations and some new code at the core. EV-DO can crank data transfer speeds up to 2 Mbit/s in theory, but it generally delivers between 300 kbit/s and 500 kbit/s, which is at least five times the rate offered by 1xRTT (see Verizon Repeats on 3G).



— Justin Springham, Senior Editor, Europe, Unstrung

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