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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 178.29-1.6%Dec 12 9:30 AM EST

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To: GO*QCOM who wrote (17562)11/8/1998 3:35:00 AM
From: lkj  Read Replies (1) of 152472
 
Hi GO*QCOM,

I am currently in ShenZhen, a southern city in China. Cellular phones are pervasive. Just about every other person has one. All of them are GSM. CDMA may be more cost effective, but GSM is already very well accepted by people here, and in general, people who have heard of CDMA think that CDMA is inferior to GSM. CDMA will have a tough battle to fight. I see at least two problems for CDMA.

1) GSM is already established nation-wide, someone needs to build a nation-wide CDMA network before it can compete against GSM. This will cost billions. I hope that someone like Lucent can offer financing to some Chinese service provider for the build up of such network.

2) Political influences. China is corrupted, someone needs to establish connections with government officials before CDMA can be accepted. Ericy has developed its connections already. It will take time, money, and a lot of know-how before CDMA can be considered.

kl
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