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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (5131)	8/23/1999 11:01:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

If I might jump in here re CDMA: Mike's comment on call quality only addressed that part of CDMA's advantage, I think in specific response to your query. Other aspects of CDMA that are to QCOM's benefit are: 1. The cdma basestations can handle more traffic than tdma or gsm or analog (amps). Thus roll-out and infrastructure costs are lower for cdma than for tdma. This is a large part of the reason that cdma is winning the lion's share of new wireless implementations globally. It's just cheaper for the telco to do. 2. The migration path is to cdma's next generation, so-called 3G. While some will disagree on this, I believe the general consensus is that 3G wireless will be based primarily on cdma. Tdma and gsm are nearing the end of their development cycle, in terms of ability to transmit data. CDMA's dominance in the 3G standard means that over the next several years, as Europe upgrades, a whole new market will open for qcom and the other cdma vendors. So, clearer voice, cheaper installation, and more data capacity. Sounds like a winner. Oh, and I might add in Gorilla terms--Qualcomm has become a favored partner in wireless-related activities, eg., Globalstar, Wireless Knowledge, others. Best, JS

To: Labrador who wrote (5131)	8/23/1999 9:18:00 PM
From: Mike Buckley	Respond to of 54805

Labrador, if the difference is really as pronounced as you imply (i presume that you may be exaggerating a bit in the example), it seems like a no-brainer that the world must switch to CDMA. I didn't mean to imply huge differences of quality between CDMA and the other platforms. I've never used a cell phone so I've got no basis of comparison. As for the analogy using the audio cassette player, I can't think of a better analogy. However, it wasn't intended as a form of hype. It's never a no-brainer that the world should switch to any platform from another platform. There are so many investments that have to be made and at times, as is the case of CDMA, there are political issues that can also get in the way. That's why Qualcomm must continue to execute very well, because there are no no-brainers. :) --Mike Buckley