TDMA vs. CDMA
How the Feds 
Blew It, Once Again
by Franco Vitaliano 
(1996)
Overcrowding In The Cellular Tenement
It is no secret to 
frazzled users that cellular systems are rapidly becoming overcrowded. 
Fundamentally, the problem rests in the fact that cellular systems are fixed in 
channel capacity, with a limited number of available frequencies. This caller 
tenement overcrowding was foreseen by the industry. As far back as 1988, the 
industry had called for a new approach that offered at least a ten fold increase 
in cellular telephone call carrying capacity. 
Even then, a digital 
solution was seen as the answer to the impending analog cellular logjam. From 
this call for industry salvation, two competing, incompatible, digital 
technology standards emerged. Each specifies how the bandwidth spectrum is 
allocated during your cellular call. One technique is called Time-Division 
Multiple Access (TDMA). The other is known as Code-Division Multiple Access 
(CDMA). 
Both technologies share the common goal of allowing the maximum 
number of calls to simultaneously take place. And both techniques are equally 
applicable to the new PCS (Personal Communications Services) micro-cells, as 
well as to other types of wireless networks. TDMA was seen as a quick start 
technology because it already had an established market base in Europe; the 
TDMA-based GSM (Global System for Mobile Communications) digital cellular 
system. TDMA was thus selected in 1989 as a digital cellular standard. 
TDMA multiplexes up to three conversations over the same 30-kilohertz 
transmission channel. However, TDMA's caller menage a trois was far less than 
the tenfold increase than was requested by the industry. Efforts are therefore 
underway to up this simultaneous user number by as much a six or eightfold. But 
TDMA offered access service vendors a quick way to get going, with some optimism 
for more calling capacity to come. 
Had matters stopped there with TDMA, 
life would have been simpler, if not necessarily better. But as in all things 
digital, a technology dark house suddenly emerged from a west coast company 
called Qualcomm. This outfit had been in the business of supplying the military 
with spread spectrum technologies for things like spy satellites. 
Spread 
spectrum, in a nutshell, allows multiple frequencies to be used simultaneously, 
rather than just one narrow slice of it. So, while TDMA attempts to shoehorn 
ever more calls into the same tight fitting frequency channel, CDMA provides a 
way out of the box. CDMA was the first to meet the ten fold call carrying 
capacity increase originally asked for by the industry. In fact, it can provide 
up to a twenty fold increase. CDMA pulls off this clever trick by assigning each 
call a unique code. 
Every packet has an identifier, so the base station 
can recognize whether it's voice or data, and process it accordingly. CDMA 
further allows every customer (which can include a number of users), to utilize 
the entire 1.25-MHz frequency allocation of the cell. This CDMA code permits a 
call to be readily identifiable from all other calls swimming in the vast 
frequency sea -- presuming both ends of the same conversation know and share the 
unique code. The originating CDMA-encoded bit stream is thus locked into a 
receiver which continually scans only for the unique code. All other call codes 
are ignored. 
This encoding scheme has a number of attractions. Call 
security, for example, is much easier to achieve, as the CDMA encoding scheme 
lends itself quite easily to crypto-techniques. Moreover, as your call is no 
longer living in an overcrowded, one room TDMA apartment, CDMA's spread spectrum 
caller high rise allows much more conversation carrying capacity. CDMA 
proponents also claim much better range, which means fewer calling cells to 
handle calls, and much lower power requirements.
With respect to PCS; 
like cellular systems, it now has two primary competing standards. One is 
CDMA-based, and the other is the TDMA-based, GSM European-derived standard. It 
used to be that the primary drawback to CDMA was that only one equipment 
supplier, Motorola, backed the technology. But all that has changed. AT&T, 
Goldstar, Hyundai, Northern Telecom, Samsung, Sony, OKI, and others, are now 
building PCS gear that supports CDMA. 
It is interesting to note the 
large number of Asian manufacturers getting behind CDMA. The reason is quite 
simple. The Europeans managed to keep the big volume Far East manufactures out 
of the GSM/TDMA business, thus giving their home teams a virtual lock on the 
equipment industry. But CDMA-based PCS is a whole new ball game where everyone 
can play, and in the biggest single market to boot -- the U.S. Thus, Qualcomm 
not only offered superior technology, it also provided the off shore consumer 
manufacturing giants an entree into an explosive new market. All in all, a 
winning hand, and Qualcomm has played it very well. 
This doesn't mean 
that TDMA is going away any time soon. Already, 'Composite' CDMA/TDMA technology 
is appearing. This hybrid technology won a Pioneer's Preference PCS license in 
the lucrative New York City market. This shotgun marriage notwithstanding, TDMA 
still has a real market share fight on its hands. 
How the Feds 
Blew it
But 
much more importantly than this looming market battle, the spread spectrum 
technology used by CDMA calls into question the whole rationale of the Federal 
Communications Commission (FCC), and its highly publicized public auctions for 
thin slices of PCS bandwidth in the 1.9 GHz frequency range. This area of 
bandwidth was carved up by the FCC into six frequency blocks (tagged A through 
F) between 10 and 30 megahertz. In addition a separate 20MHz band, 1910-1930 
MHz, was also allocated by the FCC for low power, unlicensed PCS; the so called 
U-PCS (tantamount to a PCS 'citizen band' radio). 
At the FCC PCS license 
auctions, up for grabs were 51 MTAs, Major Trading Areas, and 492 BTA's, or 
Basic Trading Areas. (The MTA's and BTA's were based by the FCC on the1992 Rand 
McNally Commercial Atlas & Marketing Guide, 123rd Edition, pp. 38-39). The 
FCC intends to issue two PCS licenses for each MTA, and four for each BTA, for a 
total of 2,070 licenses. The FCC thus went out of its way to ensure that there 
would be several competing PCS service providers within each geographical 
market. Free market forces would therefore help the consumer get the best PCS 
deal, or so it was reasoned.
Unfortunately, the FCC may have sold off the 
wrong thing, at the wrong time. Instead of encouraging maximum and best free 
market use of PCS bandwidth, the FCC may have actually hindered the growth of 
the entire mobile wireless industry, to the consumer's detriment. If vast hunks 
of bandwidth can be used by one CDMA call (bandwidth on demand), then what's the 
point, or market value, of the FCC selling off narrow, 'beachfront' PCS bands? 
Shoehorning ever more calls into one constrictive frequency no longer makes 
economic or technical sense. CDMA's bandwidth on demand means that video and 
other high data volume systems can be equally happy roaming the 'open' ether, 
along with voice calls. 
Most significant to contemplate, is what would 
happen if Steinbrecher Corp.'s radio (a system that can scan any range of 
frequency spectrum, and in real time, instantly detect which channels are free) 
were to be combined with CDMA. If this dynamic technology duo were to be 
deployed in parallel, they would completely destroy any pretense that narrow 
slices of frequency bandwidth were precious PCS commodities, to be auctioned off 
to the highest bidder. 
With CDMA and the Steinbrecher radio, all 
available bandwidth, right up and down the frequency spectrum, could be 
dynamically allocated for your changing communications needs. PCS now seems to 
be a classic case of the government getting into a technology business it just 
did not understand, with the ultimate loser being the consumer -- the one whom 
the government was supposedly looking after in the first place. 
So, 
score one for free market forces, even if the run didn't count. 
Copyright 1996, 
Franco Vitaliano, All Rights Reserved
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