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Technology Stocks : Nokia (NOK)
NOK 5.935+1.1%Nov 21 9:30 AM EST

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To: DaveMG who wrote (1841)4/30/1999 9:07:00 AM
From: tero kuittinen  Read Replies (1) of 34857
 
Actually, some of these Japanese companies already have W-CDMA collaborations with companies like Siemens. It's a little late to start up W-CDMA projects now - years after the leaders initiated their collaborations. You haven't said that Qualcomm will sell W-CDMA handsets - but the company has. The hurdles it faces can't be overestimated.

I've been saying for two years now that the Japanese companies intend to use W-CDMA to enter European and Chinese markets where they have been stumbling. That doesn't worry me - it ties the big Japanese and Korean corporations like Samsung and Sony to the interests of GSM operators. By ramping up their GSM operations and W-CDMA R&D the Asian companies are helping GSM to remain the best-funded, most diverse digital standard around. Competition is what made GSM succesful and competition will ensure that the technological development remains rapid. Besides, this ensures that W-CDMA will flatten cdma2000 a far as global competition is concerned. cdma2000 is starting to look like a regional standard, shut out of the key EU and Asian markets.

In case you missed it, NTT-Docomo's new internet phone plan is the biggest hit in the Japanese mobile telecom market this spring. It has revived the subscriber growth rate of the Japanese digital telephony standard and offers data features that the nascent IS-95 networks in Japan can't match. The IS-95 growth projections in Japan bear a close resemblance to Iridium "forecasts" of 100 000 users by the end of 1998. W-CDMA is about 15 years away from approaching the second generation digital subscriber numbers in any market. If you think that 2'000 dollar video phones will rapidly replace 100 dollar digital phones that weigh 90% less you have something in common with Iridium executives.

Tero

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