Qualcomm Denies CSFB Report Suggesting Chipset
Problems
Thursday September 12, 3:45 pm ET
By Pat Maio, Of DOW JONES NEWSWIRES
LOS ANGELES -(Dow Jones)- Qualcomm Inc. (NasdaqNM:QCOM - News) denied a research
report published Thursday by Credit Suisse First Boston that suggested SK Telecom Co. (
SKM) would slow down the rollout of its high-speed mobile data services due to " a chipset
problem."
Qualcomm supplies so-called "mobile
stratem modem" phone chips to
manufacturers that in turn integrate
them into a new high-speed wireless
data network under construction by SK,
South Korea's largest cellular operator. "
There have been no problems with the
MSM 5500 chipset," said Qualcomm
spokeswoman Christine Trimble.
In February, SK Telecom first
announced that it had launched the new
service. By June, Qualcomm said it had
deployed its first chipsets for the
network that became operational at the
World Cup soccer games in South
Korea, Trimble explained.
In a report on wireless telecommunications equipment, CS First Boston analyst Tim Long wrote
that a visit with SK Telecom suggested that launch of its "EV-DO" handsets has been delayed
due to a chipset problem.
EV-DO is said to transfer data at up to 2.4 megabits per second.
Because of the unspecified problem, SK Telecom reduced its subscriber target for the year to
400,000 from 800,000, according to Long.
The report also said the reduction in subscriptions may hurt San Diego- based Qualcomm.
Long wasn't immediately available to comment on his report.
Shares of Qualcomm recently traded Thursday at $28.08, down $1.13, or 4%, on volume of
11.4 million, compared with daily average volume of 15.4 million.
- By Pat Maio, Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com |
