Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.01

-0.3%

Nov 14 9:30 AM EST

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To: Joe NYC who wrote (20676)	1/2/1999 10:59:00 PM
From: SKIP PAUL	Read Replies (1) of 152472

"The real distinction between CDMA and GSM is not therefore on the price per minute, but rather the total minutes that can be produced for a given spectrum or dollar amount. In our example, total users for CDMA are 880,000 and for GSM 390,000 at peak loading. The fixed costs of running the wireless system, namely umbrella marketing, G&A and customer support costs, are, therefore, amortized over a wider base for the CDMA system." Above is a clip from the article you mention which is the main point of the cost equation. Moreover AT&T's network is still largely analog which is very very expensive. Another question to ponder-Does AT&T want to spend more money on obsolete(TDMA)technology that has no upgrade path when 3G is around the corner?

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