Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 173.96

+1.4%

Nov 11 3:59 PM EST

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To: verdad who wrote (129227)	5/23/2003 5:03:42 PM
From: Art Bechhoefer	Read Replies (1) of 152472

verdad-->>Cricket . . . failed to achieve economies of scale necessary to pay for their brick and mortar operational overhead.<< Two factors were mainly responsible for the present Cricket problems. First, the unlimited local call feature, plus prepaid long distance for most users did not provide significant savings over the cut rate pricing of competitors, especially Cingular. Thus, a typical Cingular user would spend little if any more on voice calls per month than a Cricket user. Second, at a critical period when Cricket was trying to build a large customer base in each of its regions, it faced cash flow shortages because of fraud by resellers, who allowed a second customer to piggy back on an account set up for another customer. It was almost impossible to recover losses from violators, even when the violators were convicted. As to Wi-Fi cutting into the cellular market, I can see it as a substitute for cellular only in limited applications. I can also see it as a substitute for wired networks in offices, factories, schools, etc. The success of Wi-Fi will come NOT at the expense of cellular but as an upgrade to existing wired networks. Art

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