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

To: carranza2 who wrote (4453)	4/28/2000 9:11:00 AM
From: tero kuittinen	Respond to of 34857

Nice timing, carrie. wwwdb.nokia.com Viag is very likely going to land one of Germany's W-CDMA licenses. And now Nokia has the first major European W-CDMA deal. I'm discounting these Isle of Man and land networks; these places are smaller than Rhode Island. What's important about the Viag deal is that it underlines the major upgrade path into 3G; GSM-1800 to GPRS to W-CDMA. These solutions are often sold bundled. GSM-1800 operators are more likely to place early 2.5G and 3G orders than GSM-900 operators, since GSM-1800 companies are usually "challenger" operators. They tend to put an emphasis on mobile data to get a jump on their bigger rivals. And Nokia is the world's number one GSM-1800 vendor - not Ericsson. So to answer the Yahoo question; Nokia has no catching up to do. Ericsson is not ahead of Nokia in either GPRS or W-CDMA deals. Ericsson may get ahead of Nokia in the EDGE market, that's true. But right now, GPRS and W-CDMA are the growth engines of the mobile network market. Ericsson's network performance in 1Q 2000 was spectacular; there's no denying that. But the phone division did come under expectations. 3% profit margin is right at the edge of profitability and Ericsson has already warned about this figure possibly dipping below zero. The profit margins of Nokia and Ericsson phone units are not converging. And if they don't converge, the unit will remain a millstone around Ericsson's neck into foreseeable future. Tero