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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (649)	8/7/1999 10:00:00 PM
From: John Stichnoth	Read Replies (1) \| Respond to of 13582

Re Reasons for infrastructure sale. As a former expatriate employee at a bank branch in Japan, I can report that the smaller players overseas have a huge hurdle to overcome in their sales efforts. The issue for Q and ericy is critical mass. Q had essentially one product to sell, and 160 different countries to try to sell it in. In the beginning Q was trying to make these sales out of one location--their headquarters. That is a hugely inefficient way to make sales internationally. Marketing costs are higher, coming in as outsiders they are distrusted, the buyer has no natural bond with the seller, etc. Ericy has a critical mass to support these efforts. They have offices all over the world, numerous products over which to spread the costs, and intimate local knowledge, including local hires (who may have gone to high school with the government official who is making the purchase decision!). There is every reason to believe that ericy can make the infrastructure division work while Q might not have. just my thoughts. Best, JS