Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.54

-1.2%

3:59 PM EST

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To: Stock Farmer who wrote (126205)	1/2/2003 5:38:08 AM
From: elmatador	Read Replies (1) of 152472

How about the technical obsolescence matter? QUOTE One of the guiding principles of MACRS ("Modified Accelerated Cost Recovery System") is that the depreciation tax life of an asset should be shorter than the actual book life of the asset (i.e., "accelerated"). The median five-year recovery period used by companies filing their tax returns is more consistent with the principles underlying MACRS as to the rapid obsolescence of cellular equipment. The IRS has typically proposed to use a 10-year recovery period, which equates to a 16 to 20 year class life, for cell site equipment that appears to be clearly contrary to legislative intent. Given the rapid technological advances in the cellular industry, the appropriate class life of these assets will not even approach 10 years, let alone 16 years. UNQUOTE QUOTE Western Europe Regional: No 3G Boom Until 2008, Says EU Telecoms Commissioner World Markets Telecoms (Mon 16 Dec 2002) Erkki Liikanen, the EU telecoms commissioner, has said that he does not expect a boom in 3G (third generation) mobile telephony to occur before 2008. Speaking in Germany's Focus magazine, Liikanen said that slow investment in the telecommunications sector meant that 'we will have to wait at least five more years for a real boom in UMTS'. Liikanen added that he expects camera phones to become very popular. UNQUOTE I am here thinking if the Europeans are waiting for the full depreciation of their 2G networks before engaging in building 3G. 5 years in a rapid technology as wirelss seems to be an eternity!!! That surely provide entrants with alternative technologies (WI-FI for instance) to make available a few bits of the whole promised digital wireless Nirvana that will come in 5 years time.

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