Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Clarksterh who wrote (4336)	4/23/2000 2:37:00 AM
From: Gus	Read Replies (2) \| Respond to of 34857

"...no one cares how much a basestation and handset costs Basestation and handset costs are real world variables that go into the basic computation of carrier ROIC (return of invested capital) so your premise is demonstrably wrong. I understand that a niche standard like CDMAONe has to alter the metrics to make its case look better, but that in no way changes the fact that in the real world, a carrier with rural and urban considerations will pay attention to costs. Do you understand now why more and more carriers like to work with Nokia because of the scale economics in its favor and the way Nokia is leading the industry in increasing the handset replacement rate. That's a revenue-side variable. As for CDMAOne's vaunted growth, surely Clark, you understand that people here are smart enough to understand that the South Korean market is CDMAOne's largest market (50+%) because the South Korean government mandated the adoption of that platform at a time when the chaebol systems was stronger, its market-share-at-all-cost strategies were in full bloom and CDMAOne represented a headstart over everybody else. That's clearly not the case now with South Korea's $58 billion IMF loan and its renewed focus on profitability. Even then it should be clear that there are American, European and Asian companies that see an advantage in 'stranding' the South Korean companies -- much feared and respected volume manufacturers -- in CDMAOne/CDMA2000 while GSM/GPRS/TDMA/WCDMA quietly moves on. All these should be fairly obvious but I guess it's not.