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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!
QCOM 175.25+0.6%Dec 19 3:59 PM EST

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To: Bill Chen who wrote (95)5/6/1996 4:29:00 PM
From: Maurice Winn   of 1819
 
Nextwave PCS spectrum price per person is only $45 [allowing for a bit of population growth]. That is so cheap and confirms Nextwave comments that the spectrum cost is low and the main cost is subscriber relationship. Nextwave is continuing the successful Qualcomm strategy of inclusiveness. They plan to be a "minutes of use" high quality, low price wholesaler to the telecom companies who already have customers. Over 10 years, the $45 costs about $10 per year depreciation and cost of capital, so next to nothing. For that $10, people will be able to make calls freely. With only 5% customer base, it would be 20x as much, =$200 per year, which would slow some people down, but Nextwave is expecting ubiquitous useage within 10 years, so only $20 per year in that case.

Nextwave web site worth reading as suggested. MIW
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