Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 157.80

+0.9%

Jan 22 3:59 PM EST

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To: Art Bechhoefer who wrote (121987)	7/23/2002 9:06:15 PM
From: Maurice Winn	Read Replies (2) of 152472

Art, it does seem unfair that crazies in Worldcom, Global Crossing can overbuild capacity and result in a price war which brings down the more prudent, but that's life in the fast lane and in businesses where overcapacity exists. The truly prudent saw the irrational exuberance in telecoms and bailed out years ago. It's creditor versus creditor now and even those with no creditors should expect to suffer in a capacity war. The oil industry in the 1980s had a great excess of refining capacity and shutdowns were a fact of life. Each tried to be the last one standing, so it can be a long and suffering battle while operating costs gradually eat away the weaker ones. In telecoms, it's not so much a matter of shutting capacity as lowering the price to fill the capacity. With no [or near zero] cost of supplying service, it makes sense to cut prices to fill capacity rather than shutting capacity. Mqurice

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