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Summary:

Vodafone CEO Arun Sarin is in India trying to put the finishing touches on Vodafone’s proposed acquisition of Hutch Essar, the number 3 mobile company here. He has been getting a lot of media coverage, which I will spare you now. However his public slam of […]

Vodafone CEO Arun Sarin is in India trying to put the finishing touches on Vodafone’s proposed acquisition of Hutch Essar, the number 3 mobile company here. He has been getting a lot of media coverage, which I will spare you now.

However his public slam of the Code Division Multiple Access (CDMA) mobile technology was something I couldn’t resist sharing with you. When asked by The Times of India if Vodafone will roll out a CDMA network, he replied:

CDMA is like spaghetti. There are too many parts to it. Why do you need it when you have such a clean global standard as GSM? For someone who is already on CDMA it makes sense to graduate to GSM and maybe get out of CDMA eventually.

Of course, Vodafone has no CDMA plans. CDMA is losing friends faster than me losing my pounds. Three large carriers in fast growing markets of China, India and Brazil are re-thinking their CDMA strategies. These are troubling signs for Qualcomm, the primary beneficiary of CDMA standard.

  1. I wonder how many hedge funds Sarin has invested in that are short QCOM
    Anyhow, the financials at Qualcomm will be impacted. However, every time a phone ships with HSDPA – QCOM will get a cut

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  2. Reliance, the second largest mobile operator in India is purely CDMA rightnow,is trying to get into GSM business. Reliance was one of the bidders for Hutch.

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  3. Petabro – you have a very vidid imagination. His comment is 100% valid, check how many operators have deployed GSM/EDGE/HSDPA vs 1XRTT/EVDO..

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  4. i have always wondered WHY on earth would any carrier decide to choose CDMA and be forced to maintain and constantly upgrade an inventory of handsets! let the consumer buy whatever handset she wants from where ever at whatever price that suits her !

    my friend has a Reliance CDMA Kyocera 7135 and is desperate to upgrade, has the money to spend, but Reliance DOES NOT HAVE A HANDSET HE CAN BUY!!!

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  5. One must wonder what Sarin is thinking. Vodafone has a hefty 45% stake in Verizon Wireless- one of the largest CDMA operators around with some 59 million customers.

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  6. Sure Qualcomm got the “cut” they wanted in India. IT Minister and Ambani both were upset because of their refusal to look into their request.

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  7. Maybe he should tell this to Verizon.

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  8. Verizon Wireless is their golden asset and everybody knows it.

    The biggest problem in liquidating/exiting is that VZ can’t afford the proper price.

    As each new quarter passes into history, and as VZW continues to crush its competition, the valuation surges ahead. VZ has been desperate to reclaim this stake, but VOD is not that foolish.

    I just wonder if VZ would ever consider throwing in the old MCI global network to keep the cash price down, and whether VOD would accept it. I mean VOD is global, right?

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  9. SM – Your comments are not clear. QCOM is a benificiary of HSDPA.

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  10. wait, a vodafone exec dissing CDMA when vodafone, if i remember correctly, co-owns Verizon Wireless?

    …does that mean that vodafone’s going to convert the VZ into a GSM network and sprint will have exclusivity on pretty much every CDMA phone in the united states?

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