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

To: GO*QCOM who wrote (2402)	10/15/1999 4:23:00 PM
From: Ruffian	Respond to of 13582

From the October 18, 1999, issue of Wireless Week Hong Kong Looks Ahead To Data Wave By Andrew Chetham HONG KONG--Though this city enjoys one of the most advanced mobile markets in the world, the emerging wireless data industry has yet to take shape. Still, the rivalries among the plethora of providers are such that most operators are being forced to signal their direction on data. Those who don't risk being perceived as behind the curve on embracing new technologies and surrendering a competitive advantage. Hong Kong may be a limited market in geographic terms, but more than half of the city's population has a mobile phone. High penetration has been driven largely by the number of service providers: Six operators and 11 distinct networks serve nearly 7 million people. Wireless voice service has become a virtual commodity product, so moving quickly to data services is seen as a way to help regain thicker margins and provide a base for the operators to clearly differentiate themselves. Thus this city will be one of Asia's early adopters of higher-speed wireless data services, though it trails behind Japan and possibly Australia. All of Hong Kong's operators except one have said they plan to implement general packet radio service technology, allowing data transmission rates at 115 kilobits per second. None have mapped out firm launch timetables, but it is likely some services will be running next year. Meanwhile, most are experimenting with GSM subscriber identity module card tool kits that allow rudimentary mobile banking, stock trading, information services, news headlines, financial information and some shopping. In addition, four of the operators have already set up their own Internet service providers in preparation for mobile Internet browsing through the Wireless Application Protocol. The difficult questions arise not with GPRS but with third-generation services. The question facing carriers: Can they make an economic case for investing in the expensive technology in such a competitive market? The three biggest and deepest-pocketed players--Cable & Wireless HKT, Hutchison Telecom and SmarTone--have already said they will apply for 3G licenses. But the other three are wary. When equipment manufacturers cannot even give a firm idea of the infrastructure costs involved in 3G, carriers are hesitant to commit themselves to anything more costly than GPRS. And most of the applications currently available (except full-motion video) do not need speeds higher than 100 kbps. The government plans to complete its policy guidelines in the middle of next year with the aim of inviting licenses by the third quarter and issuing them in the fourth quarter or early in 2001. The government, however, is far from clear on how many licenses there might be and just how much success applicants might have. There is 60 megahertz of spectrum available. There's talk of four licenses based upon the internationally agreed idea that any 3G service would need at least 15 megahertz to run a decent service. Given the question marks over the economic risks associated with offering 3G, some think the government would be lucky to get four applications. One possible scenario: The government may only offer three licenses and "refarm" spectrum to the other operators who chose to stay with second-generation services and GPRS. In private, many of the mobile operators admit they would not mind if the whole 3G process got kicked back one or two years to allow more time for the technology to mature and new applications to be developed. Providing a "fat pipe" is an admirable goal, but unless carriers foresee profitable applications to send through it, they are reluctant to initiate the process. The government has signaled its recognition of this dilemma, and says it may decide to stagger the 3G licensing rounds over time.