Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 159.42

-1.2%

Jan 16 3:59 PM EST

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To: Jacob Snyder who wrote (95969)	3/20/2001 1:01:24 PM
From: Keith Feral	Read Replies (2) of 152472

Yes, most of the cost of infrastructure buildouts is paid through vendor financing. No, the buildout is not dependent on the availability of credit in the high yield market - to date. There has been an increase in the amount of high yield debt. However, the equipment supply companies have war chests full of cash to fund these projects. They have demonstrated very little need to raise new cash through high yield deals at this time. Lucent has been the most imaginative so far as they have tapped a $5 billion high yield deal & sold a $5 billion piece of their fiber equipment business. They are the only major company I have seen in the high yield market so far for 3G vendor financing. It would not surprise me to see Motorola and Ericsson arrange some deals. I doubt that Nokia or Nortel need the cash. The spin off's and divestitures have been an important way for companies to shed assets to avoid building debt, especially in the way that 3G licenses were purchased by the wireless providers like VOD. They sold interests in Orange and Mannesman to pay for their licenses in Europe. They have increased equity interests in KDDI in Japan. They are trying to create a global 3G network that is unparalleled in Asia, the US, and Europe. The only company missing in their global empire is China Unicom. An equity interest in Freetel would be nice too. You have to appreciate that the press has only one interest - to stir controversy and sell headlines. Do you think that these reporters have any in depth knowledge about wireless? The degree of talent for these reporters is pretty limited. Believe me, the issues about funding 3G has limited substance. It is the same FUD we used to hear that QCOM's IPR may not be as strong for WCDMA, despite the 50 contracts they have signed with other telcom companies that demonstrate they are willing to pay QCOM equal royalties for CDMA2000 and WCDMA.

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