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Technology Stocks : Nokia (NOK)
NOK 6.510+0.6%Jan 2 9:30 AM EST
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To: tero kuittinen who wrote (6797)8/2/2000 3:50:01 PM
From: Keith Feral   of 34857
 
Wireless companies subsidizing handsets is not a distortion of free market competition. Is is an independent act of market competition. In Korea, this practice has been so successful that SK Telecom achieved monopoly status - the ultimate goal of greed and avarice. Now, their government is intervening to keep thier market share below 50%.

I will share one thing that bothers me about phone subsidies though. I cannot figure out how cell phone companies have been talking about declining ASP's for the past sveral years when the replacement cost of a cell phone is basically the same ($350). Simply stated, the discussion of declining ASP's is not consistent with the price that cell phone companies say it costs them to replace a phone.
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