Friday October 1, 12:43 pm Eastern Time
Company Press Release
SOURCE: Banc of America Securities LLC
Wireless Internet Is the Next Big Investment
Opportunity in the Wireless Data Industry According to
Banc of America Securities' Wireless Analyst
SAN FRANCISCO, Oct. 1 /PRNewswire/ -- The following is being issued by Banc of America Securities, a member of the
National Association of Securities Dealers, CRD number 26091:
Handset technology is growing at an explosive rate, making the wireless industry a good investment, said Mark McKechnie, senior
research analyst covering wireless equipment companies for Banc of America Securities.
(Photo: newscom.com )
''The wireless industry is growing at a rapid rate with cellular phone penetration in Europe north of 30%. Future prospects also
look strong, with the industry now targeting the mass consumer market, and the emergence of the wireless Internet,'' said
McKechnie.
McKechnie's comments came at the 29th Annual Banc of America Securities' Investment Conference, which runs through
October 1 at the Ritz-Carlton Hotel in San Francisco. This former Montgomery Securities' conference bears a new name but
boasts a program that lives up to its impressive reputation. The five-day conference features 250 presentations from companies
that are driving the Business Services, Consumer & Retail, Energy, Entertainment, Media & Telecom, Financial Services, Health
Care, Industrial Growth, Real Estate & Lodging and Technology industries.
The major trends driving increases in the use of handsets growth are the lower fees that have resulted from competition and
deregulation, and the improved phone quality that has come with the advent of digital technology, McKechnie noted. Cellular
phone sales should be north of 240 million in 1999, up 50% from 160 million in 1998. This explosive growth caught the industry by
surprise, resulting in some component shortages and instances of unmet demand.
Longer term, industry growth will be driven by further penetration of the mass consumer market, but more significantly, the
emergence of the wireless Internet. According to McKechnie, the Internet is currently underutilized because of its lack of
portability. Wireless Internet, which McKechnie believes is now in its infancy but just around the corner, will be a major inflection
point for the industry.
To enable the evolution of the Wireless Internet, the industry is addressing the limitations of today's physical layer, moving from
second generation or ''2G'' voice networks, to third generation or ''3G'' data networks, said McKechnie. McKechnie expects over
ten years of network upgrades as wireless operators transform their networks to handle high bandwidth data traffic.
As with the Internet, the next level of change will also require technology enablers. The Internet gained mass market appeal with
the advent of Netscape browser in the mid-1990s. McKechnie expects that the WAP (wireless applications protocol) browser will
do the same for wireless Internet.
McKechnie believes that solid wireless fundamentals should continue to develop throughout the year. Component shortages will
likely persist through early next year as demand outpaces supply, but the wireless Internet will begin in earnest in early 2000.
For stock picks, McKechnie recommends Qualcomm (Nasdaq: QCOM - news; $192, Buy) [1], creators of CDMA, the fastest
growing wireless technology and the choice for wireless data. Motorola (NYSE: MOT - news; $88, Strong Buy) is well-positioned
for the wireless Internet with Cisco and Sun as partners, as well as a new handset product line. Nokia, (NYSE: NOK - news;
$90-3/4, Buy), who embodies the shift to mass markets and the wireless Internet, is a major player. He suggests RF Micro
Devices (Nasdaq: RFMD - news; $46-1/2, Strong Buy) [1,2] and Sawtek (Nasdaq: SAWS - news; $31-7-8, Strong Buy) [1] as
component plays.
Banc of America Securities LLC (BAS), a subsidiary of Bank of America Corporation, is a full-service investment bank and
brokerage firm. With principal offices in San Francisco, New York City and Charlotte, BAS employs more than 4,000 associates
in offices around the country, and with affiliates, offers capabilities worldwide.
Bank of America Corporation, with $614 billion in total assets, is the holding company for one of the largest banks in the U.S., with
operations in 21 states and the District of Columbia.
(1) Banc of America Securities LLC currently maintains a market in this security.
(2) Banc of America Securities LLC currently maintains a market in this security. Banc of America Securities LLC was
co-manager of a public offering for this company in the last three years.
SOURCE: Banc of America Securities LLC
More Quotes
and News:
Motorola Inc (NYSE:MOT - news)
Nokia AB Oyj (NYSE:NOK - news)
Qualcomm Inc (NasdaqNM:QCOM - news)
RF Micro Devices Inc (NasdaqNM:RFMD - news)
Sawtek Inc (NasdaqNM:SAWS - news) |
