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

To: cfoe who wrote (4228)	12/16/1999 1:54:00 PM
From: Martin Atogho	Respond to of 13582

More proof that CSCO will be a qualcomm client rather than rival. Csco will eventually use CDMA in IP telephony. Cisco (CSCO) 98 3/16 +2 5/16: The IP protocol is taking over the world. Vodafone (VOD), Cisco, Hyundai Electronics, and TELOS Technology ran a demonstration yesterday of a wireless communications core network entirely based on the IP protocol. The system provides complete IP based transmission for PCS and cellular phone and data transmission. The significance of this event should not be overlooked. The current wireless voice infrastructure is proprietary, in fact, most of the entire circuit switched telephone system consists of proprietary components, particularly at the central office and user end. Cisco is the dominant provider of networking equipment in the open environment of the IP world. If Cisco could ever get the phone world to become an open environment, based on the IP packet switched standard, instead of the circuit switched world, the benefits would accrue to Cisco. In an open environment, the dominant player tends to become even more dominant, as economies of scale become an important competitive advantage. The CDMA based wireless IP infrastructure trumpeted in the press release was only a test, but you can expect the rollout of IP based wireless infrastructure from Cisco and Vodafone pretty soon. We haven't had the chance to look at the pricing of this solution versus existing solutions, but the press release claims it is "cost-effective," which we believe. The integration benefits will probably help sales, as well, as data from the internet becomes even more integrated with wireless phones. Although the actual transmission stations were Hyundai products, and Vodafone was the telecom company, we think the real beneficiary of this development is Cisco. Any movement towards making the phone network IP based and open, instead of circuit switched and closed, has to be good for Cisco. It is kind of like opening the gate and letting a professional football player unto the high school playing field. - RVG News from Etrade Story stocks.