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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 175.32+0.3%3:59 PM EST
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To: cfoe who wrote (4763)1/3/2000 10:08:00 AM
From: Art Bechhoefer  Read Replies (4) of 13582
 
SPRINT PCS is making a major marketing effort throughout the east coast area in order to compete with Bell Atlantic Mobile, which has teamed up with Vodafone AirTouch to create the only other CDMA service with nationwide coverage. The spectacular performance of QCOM shares, combined with numerous references to CDMA as a state-of-the-art technology, is very likely to spur sales of CDMA phones, whether for Sprint PCS or Bell Atlantic.

I think Sprint PCS will be the winner, at least in the area served by Bell Atlantic for the following reason: Like other regional Bell companies, Bell Atlantic wants to protect its revenue stream from wired phone service. Sprint PCS is in a position to offer service at costs that may be competitive with wired service, particularly for people who have two wired phone numbers and might prefer converting one of them to wireless. Ultimately, the maintenance costs for a wireless operation are less than the maintenace of all those utility poles, lines, amplifiers, etc. If there is a trend signaled by the anecdotal data you picked up from Albany, it is that wireless will begin to replace the wired infrastructure, even in a developed country like the U.S.
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