Chapter 689: Potential Crisis

"In order to describe in detail the advantages of CDMA over the first generation of FDMA analog signal technology and the second generation of TDMA digital signal technology, we made a model similar to a cocktail party, if each communication channel of the operator is compared to a cocktail party for communication," Sharp Corner Manor, Owen Jacob eagerly pitched Qualcomm's CDMA technology to Eric during the meal: "FDMA form" Cocktail party', only two guests are allowed to have one-on-one conversations at the same time, this technical form of communication is extremely inefficient; TDMA mode of 'cocktail party', at the same time can allow multiple guests to take turns to communicate with the interactive object, although the utilization rate of the communication channel is improved, but in fact, at each simple point in time, only one user can be accommodated, our CDMA model' The cocktail party completely breaks this limitation, allowing multiple groups of communicators to communicate in different 'languages' at the same time, so with this more efficient communication bandwidth utilization, the cost of building a mobile communication network using CDMA technology will be much lower than that of the second generation of digital signal technology. ”

There were four men, three women and seven people sitting on both sides of the long table in the restaurant at this time, Eric, Chris and others were listening carefully to Owen Jabgo's narration, only Xiao Nizi seemed a little absent-minded, however, Owen Jabgo's simple and easy-to-understand description also made her easily accept the advantages of CDMA, and looked at Eric who nodded slightly next to her, Xiao Nizi blinked, pretended to be curious, and asked with a serious expression: "Mr. Jacob, since CDMA is more than ...... Well, the other two technologies are excellent, why did AT-T choose GSM as the technical standard?"

Eric turned his head and glared at the little girl who was messing around, but he didn't blame anything. Instead, he looked at Owen Jacob.

Owen Jabgue, who was not embarrassed by this question in the slightest, smiled and explained, "Miss Drew, you must have been a little confused about the noun I was talking about. Allow me to explain to you that GSM stands for Global System for Mobile Communications, which is a more mature digital communication technology developed on the basis of the second generation of TDMA digital technology. There are many reasons why AT-T chose GSM technology. Among them, GSM technology matures earlier than CDMA technology and realizes commercial use is also the most important aspect, AT-T has a very strong capital, do not have to care about the construction cost of mobile communication networks, so they will choose GSM technology that has been widely promoted. CDMA technology so far does not have a mature commercial network is also our biggest disadvantage, however, Qualcomm has accumulated ten years of research and development experience in CDMA technology, we are very confident that CDMA technology is currently very mature, as long as we can get a commercial opportunity, we will definitely be able to prove the superiority of CDMA to everyone. ”

Owen Jacob said finally. His eyes fell on Eric.

Instead of meeting some of Owen Jacob's expectations right away, Eric said, "Owen, do you know Nokia?"

Owen Jacob's expression changed slightly, of course he knew Nokia, a communication equipment and mobile phone manufacturer that was rapidly rising from the brink of bankruptcy, and said: "If I remember correctly, Nokia's controlling shareholder is an overseas company called Hawaii Fund, which in turn is an overseas investment fund set up by Firefly Investment Company. ”

Eric nodded, the purpose of the Hawaii Fund in the first place. It is to avoid the high corporate income tax in the United States by withholding Nokia's future profits overseas, as Apple did. This tax avoidance method is completely legal, so Eric did not deliberately hide from the outside world the information that Firefly Investment is actually the controlling shareholder of Nokia.

Noticing a hint of doubt in Owen Jacob's expression, Eric could roughly guess what the other party was thinking.

In the past two years, Nokia has developed into one of the top communication equipment and mobile phone manufacturers in Europe, second only to Ericsson in strength, but the gap is getting smaller and smaller, and even there are signs of overtaking. The reason why Nokia has risen rapidly in just over two years. In addition to the huge development funds injected by Firefly, the more important reason is that Nokia is ahead of other communication manufacturers in GSM technology layout and the rapid popularization of GSM technology, GSM technology can be said to be the foundation of Nokia's rise, however, GSM technology has been widely popularized in Europe and Asia. However, in North America, it is in the initial stage of development, although AT-T, the largest telecommunications giant in North America, has identified GSM as its main mobile communication technology standard, but AT-T's GSM network construction has only just begun.

Therefore, in Erwin Jacob's view, the most important thing for Eric to do now is to help Nokia promote GSM technology in North America and enter the North American market, rather than throwing an olive branch to CDMA, a competitor in GSM technology.

Eric didn't wait for Owen Jacob to ask, and took the initiative to explain: " Owen, I know you must have some doubts, but in my opinion, there is no conflict between supporting the development of Qualcomm and Nokia, because GSM and CDMA are completely different two generations of mobile communication technology standards, Qualcomm and Nokia should also be two completely different companies, I even hope that Qualcomm and Nokia can form a relationship of friendship and cooperation in the future, these we will discuss in detail in the future, I just mentioned Nokia, in fact, there is another reason, although Nokia is now developing very rapidly, but in the second half of last year, Nokia also experienced a very major corporate crisis, this aspect Chris knows better than me, he was running around for a long time at the end of last year, let him talk about it. ”

Everyone looked at Chris, and although Chris was a little puzzled why Eric suddenly brought it up, he explained: "Before 1992, Nokia only produced a few hundred thousand mobile phones a year. However, after 1992, because of the strong market demand brought about by the popularization of GSM technology, Nokia's communication equipment and mobile phone sales have shown a geometric multiplier, last year Nokia alone mobile phone sales reached 3.1 million pieces, the rapid expansion of production capacity demand almost led to the collapse of Nokia's component supply chain, therefore, Nokia's CEO Yoma Ollila and I spent several months at the end of last year to carry out a thorough overhaul of Nokia's supply chain to ensure that Nokia's production capacity can meet the continuous expansion of the mobile communications market。 ”

Owen Jacob has been racking his brains to promote CDMA technology, but he has never thought about the longer term, but when he heard Chris talk about the crisis that Nokia experienced last year, he also realized something.

Eric also said at this time: "As far as I know, in addition to some manufacturers who are still producing the first generation of analog signal mobile phones in the market, almost all mainstream communication manufacturers produce digital mobile phones in the GSM standard, and Gao has been focusing on technology research and development for the past ten years, and it also does not have much capacity to produce CDMA equipment." So, once CDMA technology is selected as the technical standard by any major communications operator, what does Qualcomm plan to do to meet the sudden market demand for millions of CDMA devices?" )