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Technology Stocks : Nokia (NOK)

NOK 6.220

-1.1%

3:59 PM EST

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To: Mark Marcellus who wrote (9474)	2/25/2001 5:15:46 PM
From: foundation	Read Replies (1) of 34857

Nokia responds to Jacob's comments in FT: ---------- Nokia must say what it can to keep Operators in line and on program. They've really nothing to lose. In light of recent performance - their credibility is already in question with analysts and pundits - made much worse by their recent (and rather comic) prediction that they will provide commercial quantities of wcdma handsets by H2 2002.... Nokia has about 6 months to bring GPRS handsets on line - after defaulting on previous schedules. Why will this 6 months be different? Will monocell handsets be considered a success? Will strapping 2 cells together be a success? How will they stay under Europe's radiation limit levels with multiple cells? Beyond 2 - they haven't a chance - certainly not in time for their most recent deadline. There are rumors of compression software that are - at this time - vapor. And if not vaporware - why is it not already applied to gsm handsets or MOT's buggy gprs handset presently on market? The handsets they cobble together will push radiation limit levels - higher than gsm and cdma - and that is when the fourth estate will take matters into their hands. No matter if radiation concerns are justified, gprs handsets will be branded a potential threat to health by an already dubious press (China now refers to cdma handsets as "green" handsets, and Unicom will offer its present gsm customers the ability trade for cdma handsets). 10-20kbs handsets, with high relative radiation levels will be contrasted with 117kbs and higher gprs data-ready handsets promised by vendors a few short weeks ago. Rage, skepticism, an unwillingness to believe vendor's claims and promises --- and a public relations fiasco larger than the industry's WAP blunder will result. SMS - already available with gsm handsets - will be the best and most that gprs handsets will have to offer - providing no incentive for replacement purchases. Nokia has nothing to lose - at this point - in promising the moon and stars...

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