Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 178.29

-1.6%

Dec 12 9:30 AM EST

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To: ktse who wrote (1283)	3/26/1997 9:25:00 AM
From: kech	of 152472

Ktse - There is a history to this. ATT bought McCaw. McCaw was the first company trying to get a Nationa Footprint for Seamless National Service for Business Customers i.e. "Cellular One brand among non-wireline cellular providers. It was rational for McCaw to push for the first digital standard that would become available so he could push his first to market service for Seamless National Service. He also chose TDMA digital early because he was constrained in some markets by capacity and there was fear that regulators would open up the cozy cellular duopoly to a third party if the duopoly didn't provide good service. So ATT buys McCaw because of its size and coverage to get access to local market and avoid Regional Bell Operating Company access fees for long distance to business customers. In the deal they get TDMA cellular even though their own equipment arm Lucent was pushing CDMA. My guess is that ATT isn't really marketing its TDMA digital service but is just making it available. It will continue to provide it at this level, patching in with PCS, until it has depreciated some of its investment. Sooner or later, in my opinion it will switch over, but will have to compensate users that bought TDMA phones somehow to get them to buy CDMA phones. It would rather do this when the prices have come down from the current $500 (charge to providers from phone makers) to a much more reasonable level. I think its switches are already built to be convertible -at least the more recent ones from Lucent have this capability - maybe not the older Ericsson switches. So there you have it - my guess is 3 years from now. Tom

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