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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 170.90

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Nov 7 9:30 AM EST

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To: foundation who wrote (30304)	12/22/2002 10:01:36 PM
From: foundation	Read Replies (1) of 196568

China Unicom announces CDMA plans as 7 million target in sight China Media Intelligence Volume 2, Issue 15 December 23, 2002 China Unicom has announced plans to develop its CDMA mobile network in 2003 as its 7 million subscriber target looks increasingly achievable. By December 12, the company claimed 6.3 million subscribers to its ill-fated CDMA network launched at the beginning of this year. For much of the year its 7 million target has seemed unreachable. In the first six months of operation the new service attracted only 600,000 new subscribers on top of 400,000 inherited from the old Great Wall network. However, the target has been achieved at no small cost. Originally aiming for high end users the company has ended up giving away handsets and free airtime to attract subscribers to the service. Industry analysts have estimated Unicom's bill for handset subsidies to be around Rmb2 billion. China Unicom is making the expansion of the CDMA network a key priority for 2003. A spokesman for the company recently explained that its target for next year is to build the network up to between 20 million and 22 million subscribers. Its key strategy to achieve this goal will be the promotion of mobile data services. With voice traffic decreasing both China Mobile and China Unicom will be looking to short messaging (SMS) and later multimedia (MMS) services to boost their average revenues per user (ARPU). In this battle Unicom has the inherent technological advantages of CDMA on its side but competition will nonetheless be intense (see Analysis in this issue). However, China Unicom has also now received permission from the Ministry of Information Industries (MII) to test Qualcomm 3G CDMA2000 technology in China. Furthermore, government officials have indicated that the tests will play an important part in informing the MII's decision about 3G technology deployment. CMI - 23/12/02 eight-and-eight.com

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