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Technology Stocks : Nokia (NOK)
NOK 6.870+0.9%Feb 5 3:59 PM EST

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To: Caxton Rhodes who wrote (7299)9/27/2000 3:12:55 PM
From: Ruffian  Read Replies (1) of 34857
 
Nokia holding cut

Invesco has already reduced its holding in Finnish handset and infrastructure maker
Nokia [NOK] and is not a big holder in Ericsson [ERICY].

Concern about the 3G spending was a factor in the big falls in the share prices of Nokia
and Ericsson after their mid-year results.

See story on Ericsson’s results. See story on Nokia’s results. See Goldman’s view on
pressures on Ericsson’s position.

There is also a danger the telecoms operators will not be able to provide the content to
fill their 3G networks once they are built, or that the capacity will go unused, Hayward
said.

Risk of 3G flop

Hayward pointed to the lackluster response to WAP (Wireless Application Protocol)
services introduced in Europe over the last year.

WAP is a less sophisticated way to access the Internet and has not been as successful as
many had hoped in its European launches because of slow download times and relatively
sparse content.

“There’s still a risk ahead of us that all that capacity that we will have when the third
generation is deployed will go unused,” he said.

“We may not see the ramp up in services that has everyone so excited about what is
happening in Japan.”
snip

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