MUST READ!! - Forbes/Andrew Seybold's Wireless Outlook Announces Investment Opinion
Business Wire ~ June 4, 2001 ~ 1:01 pm EST
NEW YORK and LOS GATOS, Calif.--(BUSINESS WIRE)--June 4, 2001--
Investment Opportunities in U.S. Wireless Industry Revive as European, Japanese Initiatives Stall, Writes Andrew Seybold in Forbes/Andrew Seybold's Wireless Outlook
While Europe and Japan have paced the wireless industry in recent years, news that European
third-generation wireless networks are as much as 3 years behind schedule and that Japan telecom giant
NTT DoCoMo is experiencing difficulties with its Wideband CDMA alternative suggests that the United States
is now solidly in the lead, with several service providers set to launch 3G wireless networks based on
Qualcomm's CDMA technology this year, writes Editor Andrew M. Seybold in the current issue of the
investment advisory newsletter Forbes/Andrew Seybold's Wireless Outlook.
Qualcomm has consistently prevailed in court cases involving infringements on its technology and
companies subscribing to its 3G CDMA technology have leaped ahead, Seybold notes. The irony, he says,
is that the Europeans and Japanese tried to avoid paying royalties for Qualcomm's superior 3G technology,
instead promoting rival technologies such as UMTS (Europe) and WCDMA (Japan).
Getting these technologies to work without incorporating more of the Qualcomm intellectual property will be a long hard battle, he believes.
"Those who got on (Qualcomm's) bandwagon will be first to market with 3G services," he writes. "Starting this year Qualcomm will collect royalties from U.S. service operators as well as operators in Australia,
Japan, Korea and China. Later on, it will receive royalty revenues from NTT DoCoMo and the European
network operators."
Moreover, Seybold adds, most of the chips that run the 3G network-compatible handsets come from
Qualcomm's semiconductor group, which he says the company plans to spin off.
"Now you know why we have been touting Qualcomm stock from the very inception of this newsletter," he
writes. Further, the situation presents significant opportunities for investors to "cash in on the new-found
U.S. position as the leader in 3G wireless networks" by buying shares in several network operators that he
recommends.
Seybold also examines the impact of 3G wireless on several wireless information service providers that he
says will also reap the rewards of an early rollout of a high-speed wireless data. An associated article looks
at telematics plays, companies with products that connect motorists wirelessly to a growing menu of
services.
"This is not pie-in-the-sky stuff," he writes. "Nearly half of all new-car buyers demand that their autos come
with telematics services ... the number of in-vehicle telematics systems will grow to more than 11 million by
2004."
Contributing Editor Barney L. Dewey presents his monthly update of the model portfolio of promising
wireless companies constructed by Forbes/Andrew Seybold's Outlook staff, reviewing significant recent
events driving the various companies.
In his "Companies to Watch" column, Dewey analyzes Glenayre Technologies' ( Nasdaq:GEMS)
restructuring activities and its move to focus on unified communications (one number checks all) and its
move out of its historic wireless messaging business.
About Forbes/Andrew Seybold's Wireless Outlook
Forbes/Andrew Seybold's Wireless Outlook, a monthly investment advisory newsletter focused on publicly
traded wireless technology companies, is published jointly by Forbes and Andrew Seybold's Outlook Inc., a
newsletter and conference producer based in Los Gatos, Calif.
Wireless Outlook is not a market-timing device, but rather is an information conduit based on belief that the
wireless technology field offers significant opportunities for investors.
Newsletter staff members believe that the stocks comprising the portfolio are appropriate for any
well-diversified wireless portfolio. For subscription information, call 800/293-3157. For editorial information,
e-mail amseybold@ outlook4mobility.com.
CONTACT: Forbes/Andrew Seybold's Wireless Outlook
Ruth Johnson, 408/354-7900
13:01 EDT JUNE 4, 2001 |
