Sonera (SNRA) : The next Nokia ? Message Board

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Technology Stocks : Sonera (SNRA) : The next Nokia ?

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To: Maurice Winn who wrote (1)	12/20/1999 11:37:00 AM
From: tero kuittinen	of 101

I think this encryption and M-commerce standard fight will be over by the time 3G comes along. Italy is launching stock-trading now and I think Germany will have M-banking by spring as well. Simple financial transactions don't need much bandwidth - they should be OK with the current WAP and digital standards. The jostling for M-commerce leadership might be over by the end of next year. I guess that's what's driving Sonera right now, it's hard to explain these kinds of gains any other way. There's no way Sonera's mobile voice traffic revenue can support this share price - the future growth has to come from M-commerce. Exciting & dangerous... it will be extremely interesting to see how rapidly people will start adopting WAP to buy and sell via mobile phones. Mobile operators haven't really been valued based on their mobile data expertise until this winter. Looks like markets are starting to focus on data instead of voice. Sonera should be a genuine leader, since it started offering internet phones in 1996 - they've collected a lot of know-how during these years. Their Zed portal project is the best attempt at creating a genuine mobile portal I've seen yet. It's very early to start forecasting who will be the mobile Yahoo, though. Sonera's plan to spin off Zed into a separate company is the kind of a commitment to a rapid, flexible net strategy markets like to see. This "next Nokia" angle is a kind of an overheated hyperbole, though. Mobile telecoms isn't an untapped market, which it was a decade ago. Competition is much tighter now. Sonera still has its old-fashioned fixed-line business as a growth-drag. It might take years until the mobile data revenue starts impacting on earnings growth in a big way and the aggressive investment strategy will burn money in the meanwhile. What's genuinely scary is the valuation of those mobile operators that don't have an advanced mobile data strategy dating back to several years - so I guess Sonera isn't the dodgiest prospect right now. Tero

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