conradzoo said:
Confused.
Can somebody explain me the differences between the cellphone market between the US and Europe.
Will a 'iPhone' just be marketed to the US or worldwide (as the iPod does)?
Well, let's see, about 20 years ago, a lot of countries in Europe, Asia and elsewhere decided on a standard digital cell phone system and called it GSM. About 15 years ago GSM networks became quite widespread across these countries. In the meantime US kept on using analog cell phones. Motorola did not even believe that digital cell phone had much of a future, so it decided to stay away from this market, a decision which almost bankrupted the company.
US started rolling out digital service only about 10 years ago. As US government does not like to dictate private companies how to conduct their business, they sold the spectrum and put down some basic ground rules, but for the most part they let the service providers use any network they wished. For one reason or another, these providers decided go with about 4 different standards at first. Quite a few companies went with GSM, AT&T picked a similar, but incompatible TDMA (IS=136?) standard, Nextel went with a proprietary standard they called iDEN and Sprint and Verizon went with CDMA, a radically different standard (IS-95) designed by Qualcomm. At the time, other big companies were very skeptical, so Qualcomm had to not only develop the underlying communication standards, but manufacture cell phones and the electronics for the cell towers. However, once the system proved itself, everybody started moving in that direction. Even the upcoming 3G system for these GSM networks, called UMTS, use a variant of CDMA technology.
CDMA is a more complicated standard compared to GSM, but it allows the providers to cram more users into each cell, it is supposedly cheaper to maintain and more flexible in some respects. However, anybody in that boat has to pay hefty royalties to Qualcomm, dampening its popularity. While creating UMTS, GSM standards bodies did everything they could to avoid using Qualcomm patents to avoid these payments. However, I don't know how successful they got in these efforts.
Even though Europeans here on these forums like to gloat that US did not join the worldwide standard, that we did not play along, that ours is a hodge podge of incompatible systems; without the freedom to try out different standards, CDMA would not have the opportunity to prove its feasibility and performance. In the end, the rest of the world is also reaping the benefits through UMTS/WCDMA.
Of course, not using the same standards as everybody else has its own price. The components of CDMA cell phones cost more and the system itself is more complicated, so CDMA versions of cell phones hit the market six months to a year after their GSM counterparts, if at all. The infrastructure cost of a rare system is higher as well, so AT&T had to rip apart its network to replace it with GSM version about five years after rolling it out. Sprint is probably going to convert Nextel's system in the near future as well.
I hope this answers your question.