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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%3:59 PM EST
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To: tero kuittinen who wrote (18358)11/16/1998 7:33:00 AM
From: Michael Allard  Read Replies (1) of 152472
 
Tero:

How many (if any) of the US GSM Operators run Analog networks as well? As you point out, there is a major shift from analog to digital subscribers in the US. Since most PCS carriers are pure digital (Sprint-PCS, Primeco and most if not all the GSM operators) I would expect their growth rates to increase. Since the legacy carriers are running analog networks which host the majority of their subscribers, their digital subs ratio is low, and a general shift in the market from analog to digital will effect their overall growth rates less. Net digital additions are what is important, not net additions. Of all the carriers you mentioned, exactly none of them experienced a decrease in digital subscribers. In fact they all are experiencing similar growth rates in digital subscribers as are their CDMA PCS counterparts. Comparing the same period referenced in the article:

CDMA Net Subscriber addition growth rates:

SprintPCS - 218%
Primeco - 155%
Aitouch - 364%
GTE - 200%
US West - N/A
BAM - N/A
Clearnet - N/A

As an apples to apples comparison statement:

The GSM Press Release:

GSM Service Now Available in Nearly 2,400 North
American Cities; 1.3 Million New Customers Added in
Less Than a Year

Third Quarter Customer Total of 2.3 Million up 158 Percent from 1997; 'Every Minute, Three New GSM Customers Added in North America'

The CDMA Press release would be:

CDMA Service Now Available in over 8,000 North
American Cities; Over 2.4 Million New Customers Added in
Less Than a Year

Third Quarter Customer Total of over 4 Million up 384 Percent from 1997; 'Every Minute, Six New CDMA Customers Added in North America'

Tero, CDMA subscriber counts are growing at least twice as fast as GSM in North America.
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