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Technology Stocks : Nokia (NOK)

NOK 6.550

-0.9%

Jan 16 3:59 PM EST

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To: LarsA who wrote (19567)	4/15/2002 1:42:42 PM
From: Eric L	Read Replies (1) of 34857

re: Nokia, Verizon, & BREW << Verizon ... Nokias? No, sorry but can we offer you some BREW? >> BREW is a very clever part of Qualcomm's strategy for a number of reasons. The most important reason so far as I am concerned is that it is an enabler of wireless internet applications ... ... but it is also a hook that makes the use of Qualcomm chipsets preferable if not mandatory for those carriers that decide to use BREW ... ... and consequently handset makers like Nokia (but also Samsung and Motorola should they decide to use their own cdma chipsets in the future as they have in the past) have extra development work if they want to maximize potential in the cdma marketplace. It is a splendid example of having proprietary architectural control of architecture (for those that play the Gorilla Game). BREW is most certainly (just) one of the challenges that Nokia faces should they continue on their elected path of designing their own 1xRTT chipsets for the Americas. It is possible that Verizon will not mandate BREW in 1xRTT handsets, but certainly they would prefer BREW, at this stage of the game. It is also possible that Verizon will eventually offer BREW & Mobile Java without BREW. Nokia has played their CDMA strategy pretty close to the vest for the last year. I personally assume that Nokia took the BREW "hook" into account when they finally came to terms on the cdma2000 extension of their original cdma license and finalized their WCDMA infra license. I further suspect that Nokia will offer BREW enabled handsets, although I don't expect this to be their top priority. They don't have a winning strategy without BREW, IMO, and Nokia plans pretty well strategically. I guess we'll have to stay tuned to see how this plays out. - Eric -

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