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Technology Stocks : Nokia (NOK)
NOK 6.640-0.4%1:45 PM EST
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To: steve kammerer who wrote (1566)3/15/1999 10:57:00 AM
From: tero kuittinen  Read Replies (2) of 34857
 
The Taiwan deals look relatively hot. The GSM expansion in Chinese-speaking markets like China, Taiwan, Hong Kong and Singapore seems to be steaming ahead. The GPRS deal on top of the sizable Nokia network expansion deal (100 million dollars) is especially interesting. Ericsson landed the first GPRS deal in USA, Motorola countered with an important GPRS sale in England and now Nokia has bagged the first Asian contract. It looks like the acceptance of GPRS is spreading faster than anticipated - apparently the operators would rather risk paying for unproven technology than risk falling behind technologically. And it looks like a dead heat between the Big Three companies right now - they seem to be more or less equally matched in GPRS sales. It's a win for Motorola, which has had troubles in selling infra to Europe.

This also means that there will be a market for next-generation GSM phones delivering 100 kbps data. The operators will make a sales push for the new phones to recoup the GPRS infrastructure spending they are now committing to on three continents. It will be interesting to see the reaction of competing operators in certain countries - some English operators have been notably negative about the prospects of GPRS, for example. Will they really decide to opt out or will they now be forced to come aboard to avoid being outflanked by their competitors?

Tero

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