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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 152.74+0.8%1:27 PM EST

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To: Getch who wrote (113006)2/11/2002 9:52:33 AM
From: Art Bechhoefer  Read Replies (3) of 152472
 
>>I can't believe that Qualcomm is the only one playing this game, and few others are in the no debt situation of Qualcomm.<<

QUALCOMM is playing this game because others, including Nokia and Nortel, also do vendor financing. Both Nokia and Nortel have a lot of debt that makes it more difficult to play this game. Vendor financing is a well established strategy to help start-up service providers, who tend to be short of cash initially. Additionally, QUALCOMM needs to play this game to provide incentives for service providers in new markets, which otherwise might go to the more established GSM systems.

Art
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