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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 166.05+0.6%3:59 PM EST

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To: DaveMG who wrote (19610)12/14/1998 5:05:00 AM
From: Mika Kukkanen  Read Replies (2) of 152472
 
DaveMG: Clarification (?)

In reply to me:
Me: "Listen to what I have hinted at in my previous posts. I have mentioned the majority (which is around 80% TDMA based in digital today) and the ridiculous situation that we are ALL in today"

You: "Seems you're in that ridiculous situation because your foundation is built on the wrong technology. Are we supposed to pay for that by mutilating ourselves or what?"

The demand for a higher chip rate is that by an operator(s). Lowering the rate will reduce capacity. So to use your expression, operators migrating/implementing WCDMA will have to mutilate themselves. Actually, Qualcomm are asking operators to cut 10% of their revenues (as they lose about 1 in 10 subscribers, by going all the way down to 3.6864 Mcps). It doesn't sound much, but would any company like to be asked to do that, particularly as TDMA based carriers are far in the majority.

The Ericsson announcement is only a proposal. Basically, read between the lines and they have said that if operators hate it, they'll go back to 4,096 Mcps. (Also note that Nortel recently said that 3.84 was Ericsson's original proposal, but DoCoMo said no..we want more at 4.096).

What I am waiting to see now, is who is next in turn to "announce" support for whoever. Seems like the ITU dropped a "clanger" and it will be interesting to see what they say next. Of course it is immaterial with the IPR issue not going away.

All IMHO.

Regards,
Mika
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