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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 152.66+0.7%Feb 2 3:59 PM EST
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To: Caxton Rhodes who wrote (109)6/30/2000 11:30:08 PM
From: Ibexx  Read Replies (2) of 197472
 
The following is taken from a research article by Pete Peterson of Prudential on Nokia (6/30). Some implications re. Europe's potential transition to CDMA2000:

"...We believe that Ericsson's CED's recent references to high costs for 3G licenses is a push to create a spectral allocation environment that is favorable for W-CDMA. Already we are seeing the high cost of licenses for 3G in Europe. The UK government received over $34 billion for licenses, much higher than estimated. Germany and Italy are also set to go with the auction process soon. The auction process would lead to high costs to service operators and there are concerns that this would affect the development of the 3G European mobile market....Companies like Nokia for example, would benefit more from a large scale W-CDMA deployment, than a network transition deployment, either from GSM to EDGE or GSM to CDMA2000.

We believe that free spectrum for carriers in Europe would benefit W-CDMA. 3G is defined by the method 3G licenses are granted - by auction or given away. We believe that where 3G licenses are given away, the market would favor W-CDMA deployments. Where 3G are auctioned, there are incumbents that would not get the licenses. We believe that these incumbents would be interested in an alternative solution for 3G, specifically either CDMA2000 or EDGE. "

Ibexx
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