An interesting trend within the wireless industry that doesn't get much media attention is how GSM, which has more than two billion users in more than 200 countries, is increasingly becoming the global standard, while CDMA is beginning to lose its appeal. A good example of GSM's momentum is Cingular Wireless' controversial plan to charge its non-GSM subscribers, a $5 a month fee in an effort to encourage them to get new GSM phones. Meanwhile, Brazilian carriers Vivo said recently it will spend $492-million to overlay GSM on top of its existing CDMA network to stem market share losses. Before CDMA is counted out, it does have two large champions: Verizon and Sprint. As long as they are using the technology, handset makers have little choice but to develop cool new phones. This is good news for Canadian carriers Telus Mobility and Bell Mobility, which also use CDMA, while rival market leader Rogers Wireless uses GSM.
Update: In the name of fairness, Lucent CEO Patricia Russo talked about CDMA's prospects after the company's fiscal third-quarter results were posted last week. Here's an excerpt: