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

To: quartersawyer who wrote (3675)	11/27/1999 11:22:00 AM
From: Dushi	Read Replies (1) \| Respond to of 13582

I cannot retrieve this site. What is it?

To: quartersawyer who wrote (3675)	11/27/1999 1:06:00 PM
From: slacker711	Read Replies (1) \| Respond to of 13582

The plan to buy newly available spectrum was announced Tuesday. I've looked over the Lucent and One.Tel websites and get the impression that this is a GSM-based system. The overlay to 3G appears to be so efficient that the costs are insignificant compared to the advantages of functioning in the preexisting matrix. I would have guessed that Lucent would put the customer on a CDMA path from the beginning. Could you explain this to me? Does One.Tel already have cellular operations in Europe? I thought that Europe would have entirely new spectrum for W-CDMA so it really wouldnt be an overlay....and I'm not sure how it would be efficient. A couple of comments.....There have been two 3G contracts announced so far, and they have been HUGE. These numbers are a little hard to comprehend. NTT Docomo announced a $16B 3G implementation and now the One.Tel $20B announcement. This has a couple of implications for Qualcomm (that I see)..... 1) Does anybody know what the royalties from infrastructure are? Even if they are 1% they could still add up to some significant dollars. If 3G just comes to Europe/Japan/US/Korea this still seems like they will easily get to $100B in contracts. 2) CDMA (IS-95) needs to get installed into China/India immediately. There is no way that either of these two countries could afford the amounts of money to transition to 3G anytime sooner than 10 years. If it costed $16B for an island the size of Japan how much would it cost to cover China? The costs will probably drop pretty dramatically in the next couple of years but it still seems like the systems could be outrageously expensive. 3) Current CDMA operators will have a huge advantage over GSM operators (we knew that, but know I'm getting an idea as to the scale). I believe that DDI/IDO spent $3B on their current IS-95 system in Japan. Even if they spent another $3B on 3G they would still have a huge fixed cost advantage versus NTT Docomo. The same goes for operators in the US/Australia. Also...if this is the scale of the announcements that are coming, I think that any excess money that people dont have in the Q should be immediately invested in LU/ERICY/Nokia/MOT <g>. I am sort of stunned by the numbers.... Slacker