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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 137.34+0.8%Feb 6 9:30 AM EST
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To: JMD who wrote (488)7/10/2000 9:50:14 PM
From: MrGreenJeans  Read Replies (1) of 197625
 
JMD

. Can anybody explain why the world's largest telcos are forking out billions for this stuff?

For spectrum:

1. Spectrum capacity is constrained because of the explosive cellular growth rates-demand. To meet increased demand you simply need more spectrum.
2. By purchasing spectrum you decrease competition. Those telecoms without spectrum cannot compete.
3. The economic and undefined value of 3G. It is interesting that Vodafone is willing to spend billions on 3G spectrum. They have been pricing out cellular properties and technology for years. This is an indication, at least to me, they believe 3g will be huge. Remember 2G was huge and few thought or foresaw the huge cellular demand for 2G.
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