qcom up well look at that!
was down at schwab today heard some sad stories getting around alot of people got wiped out !
regards
bruce
redherring.com
HAIL TO THE CELL BRAZIL
For the simplest problem, access, the market offers a relatively easy
solution: cell phones. "We've seen huge growth because so many
people can't get good fixed-line service," says Michel Levy, the chief
operating officer of BCP, one of two São Paulo cell operators. Use of
cell phones has more than doubled since 1997, reaching nearly 10
million subscribers nationwide by 2000. Because Brazil was smart
enough to implement one standard from the start -- the 1.9-MHz
frequency à la Europe -- it will not face the compatibility problems
affecting the United States. This will only encourage further cell
phone expansion.
Cell phone use should continue, even among the lower classes.
Operators are offering prepaid phones that don't require a monthly
fee. Because prepaid phones allow incoming calls for free (in fact, all
incoming cell phone calls in Brazil are free), the margins are tight for
cell phone companies -- people wind up using the phone only to
receive calls. "But the adoption is booming," says Mr. Levy. This
makes for interesting images in Brazil, like the sight of a person living
in a shack, yet talking on a cell phone.
With this kind of growth and optimism, many experts say that
wireless is the true sweet spot for opportunities in Brazil. "I would
guess the wireless market has only been penetrated by around 5
percent," says Marcelo Coutinho-Lima, the Brazilian-born director of
research of Punto-com. BellSouth, Telefonica, and SBC (NYSE: SBC)
have all taken big ownership positions in local cell phone operators.
With prepaid cell phones and the emergence of wireless application
protocol (WAP) technology, Brazilians without computers could
eventually hook up to the Internet. Still, it's unlikely that the vast
majority will get near the Web anytime soon. WAP access calls in
Brazil are not cheap -- outgoing calls can cost up to $1 a minute.
Brazilians who can't afford a PC will probably find WAP beyond their
means as well.
But if it's true, as analysts say, that the market is becoming
saturated for those who can afford hookup amenities, businesses
that hope to grow must bring the lower classes online. Some media
and technology companies are trying to do just that. Globo.com
recently teamed up with a local bank to provide nearly $1 billion in
low-interest loans so that people can get computers, software (Globo
browsers, of course), and training. "We need to help democratize the
Internet," says Luis Boucinhas, executive director of Globo.com. |
