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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 176.31+1.9%Jan 5 3:59 PM EST
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To: ASB who wrote (28215)10/28/2002 10:39:47 PM
From: John Biddle  Read Replies (2) of 197083
 
The ban is completely illogical.

I agree with you that the ban is a very dumb move.

They are just trying to reduce outflow of dollars due to the royalties.

This I do not agree with. The ban is very clearly a punishment for not obeying the handset subsidy bans that Korea has repeatedly passed.

The subsidy bans are clearly not about an outflow of royalty dollars either, since royalties are calculated on wholesale costs which do not change with the level of subsidy.

My guess is that those responsible for the subsidy bans, trying to do the right thing but failing miserably, are attempting to protect the big bad capitalists from themselves. Subsidies can appear wasteful, and uneconomic to an outsider. Hell, they may even be both of those things. In a market economy the companies would form their own strategies and battle it out. In this case the customers are the short term winners because of low prices. In the long run who knows. The politicians are probably worried that that the companies will hurt themselves, so they step in to protect them. Add in the ego of politicians publicly snubbed by the carriers and you get bans.

Anyway, that's my guess.
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