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To: JMD who wrote (7444)	3/8/2000 5:49:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 10852

I could be wrong, of course, but I consider the "slowness" is almost entirely due to delays in GWs and distribution channels coming on stream, not to a lack of ultimate demand. When mgmt was saying back in December that they'd be shipping 40K phones per month at the start of the year, and it was obvious that there'd only be (at best) 9-10 GWs operating, I remember suggesting that there would be a buildup of unsold inventory. Whether mgmt will ever 'fess up or not, I'm convinced they solved that problem by not building the phones in the first place. I look at the problem this way: if each Gateway, a year from now, is distributing 3K phones per month, we'll be adding subscribers at a rate of 100K/month. That would be a booming success, most people would agree. With only nine GWs for most of this first quarter, the best ones only starting this month and several others in pretty weak-for-G* markets, and with a "green" distribution chain, we'll be lucky if we get 20K terminals into users' hands by the end of March. But each GW that comes on line brings with it a new market and distribution network, plus the earlier GW distribution channels get smarter and more efficient. So the sub growth rate for several months should be exponential. That's my theory, anyway, and I'm sticking to it (until/unless facts prove otherwise).

To: JMD who wrote (7444)	3/9/2000 7:28:00 AM
From: Jeff Vayda	Read Replies (1) \| Respond to of 10852

JMD: Glad you could take time out from the surf duties to attend the Q S/H meeting. As a Southerner, it is a wee bit more difficult to make a large enough space in the old schedule to support. I need less time than Mq, but then again he has much more Q than I. But anyway on to the point of this post. I am a huge fan of the potential of the fixed phone for G. As such, I am interested if anything was said at Qualcomm wrt the fixed phones. In my heart of hearts I am awaiting an announcement of production increases and price reductions. Do your notes contain any hints that my wishes are to come true? The Mexican announcement some months ago about put me out of my chair, but alas not even the smallest peep since then. Now I am tempted by the passing Indian comment. Someone get off the fence and make these deals happen - the market is asking for them, how come G cant produce? The Qualcomm execs are positive on G*. They have a spare billion in the bank. What is to stop them from reving up the production rates now? Build a few phones. Put them out there! (Unless they are feverishly working on the second gen phone - you know the one with out the cannon barrel :-) Jeff Vayda