re: build out of CDMA
1. in China it is financed by the governement, who gets their money by taxing their profitable companies, which are mainly the private, export-oriented companies, which are dependant on U.S. consumer demand, which is going to........oops.
2. spectrum cost is only one of the costs of the 3G buildout.
3. the "borrowing problem" is very much not just a European problem. In fact, it looks like it is the U.S. and Japan which could be in recession this year, with Europe the only rich area of the world not in recession. During recessions, big up-front capital budgets for un-proven markets are exactly the kind of things that gets cut. Japan is sinking under an immense mountain of debt (government, bank, corporate, all interconnected, with no honest accounting). The U.S. telecom service providers are already up to their eyeballs in debt (I'll bet T wished they had that 100B back, that they spent on buying cable assets). |
