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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.62-3.9%3:59 PM EST

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To: Maurice Winn who wrote (14654)9/7/1998 8:06:00 AM
From: tero kuittinen  Read Replies (5) of 152472
 
Maurice... put a little love in your heart. It's not quite that black and white.

* About that price disadvantage of GSM - GSM-1800 calls in Finland cost 8 cents a minute. Prices are crashing in the rest of the Europe as well. The price advantage of CDMA for end users is what? The CDMA handsets cannot undercut GSM handsets that have vastly larger economies of scale.

* Let's bury this moldering corpse of "CDMA overlays in Europe". There wasn't, there isn't, there ain't never gonna be. The push for this began in January. It is September now. Nothing's cooking. How could it? If any European country installed CDMA it would leave its customers stranded with no roaming in the other European countries. Moreover, current European customers do not accept stand-by times shorter than one week. The current US CDMA phones would be a disastrous flop over here.

* I can argue that GSM is mainly an Asian standard. The biggest GSM country in the world is China. The fastest GSM subscription growth in the world takes place in Asia. In three years the total GSM subscriber base of Europe will be overtaken by Asia. This "European standard" does not work as a propaganda tool anymore.

* How hostile, alienating and short-sighted can a basically promising company be? We are in the process of learning. Motorola's backstabbing was damaging enough; now it looks like Qualcomm's demands about altering W-CDMA are so extravagant not even another American CDMA company will back them. Right on top of that we have the Koreans in revolt, suing Qualcomm and showing support for W-CDMA. What allies does Qualcomm have left? Is Lucent the last dog to die, to paraphrase Bill? How long until also Lucent denounces Qualcomm/sues it? Could we start a betting pool?

* Japan, Korea, Europe and China in the W-CDMA corner. It looks like USA and Republic of Kongo are now the linchpins for the future of CDMA2000.

* The cynical Southern Strategy of Qualcomm is closely patterned after that of Richard Nixon. It goes like this: pander to the basest instincts of people who listen to Reba McEntire in pick-up trucks and tear up when they watch re-runs of "Alamo" on television. You can't go wrong. So it is the xenophobic Southern right wing creepoids who are now backing up Qualcomm at the US senate. This crowd pushed through the Helms-Burton law that punishes European companies who do business with Cuba. So it is possible that Qualcomm is able to manipulate them into making its case. It is every bit as cynical and nihilistic as it sounds.

Tero
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