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Technology Stocks : OMPT!!!
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To: kitterykid who wrote (508)6/30/1999 10:22:00 AM
From: tero kuittinen  Read Replies (2) of 531
 
The die has been cast. Nextel is stuck with iDEN, AT&T with TDMA, etc. The costs of network investments are so high that each operator just has to try to emphasize the best features of their standard choice and stick with it. CDMA is obviously strongest in USA and Nextel looks like the most likely loser. GSM provides a buying opportunity, because expectations were so low - nobody much believed in nationwide footprint before the recent Omnipoint deal. The new operator is clearly a major take-over bait for Hutchison or the big European mobile operators currently rolling in dough.

Having several big-brand GSM-900/1900 models in the market next winter is the big opportunity for VSTR/OMPT. I don't see why they shouldn't be able to deliver global roaming next winter under one dollar per minute with the help of Hutchison. Hutchison has a truckload of money and far-reaching global ambitions. They didn't dump a billion dollars into VSTR because they are interested in regional networks in USA; they're after a nationwide coverage combined with global roaming. Good international roaming is the one thing that US CDMA operators can't deliver. Satellite phone ventures look pretty shaky when you compare the handset specs to GSM worldphones.

We've only seen the first stages of trans-continental mobile operator deals and the US iDEN and CDMA networks are not that appealing to the best candidates to become global players like Mannesman/Omnitel, Telefonica and Hutchison/Orange. These are the operators with interests in dozens of operators around the world, high valuations to execute M&A's and big earnings to pour into new investments.

Tero

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