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

To: Ramsey Su who wrote (10725)	5/25/2000 10:51:00 AM
From: Caxton Rhodes	Read Replies (2) \| Respond to of 13582

Ramsey- I completely disagree with your post. I watched the debates and there was a lot more positive comments about China than negative. The vote showed what the US congress thinks. There was lots of scare tactic brought forth by the labor backed representatives. REMEMBER it was just posturing! Caxton

To: Ramsey Su who wrote (10725)	5/25/2000 11:18:00 AM
From: NinjaDancer	Read Replies (1) \| Respond to of 13582

Merrill Lynch said it believes the passage of the China trade bill will be a long-term positive for many U.S. communications equipment companies. "China currently represents about 6 percent of the total communications equipment market, but if new service providers are allowed to enter the Chinese market, we would expect spending in China to accelerate," Merrill said in a note to clients. But Merrill is not as sanguine on Qualcomm's prospects. "In the near-term, passage of this bill may reduce any remaining leverage the U.S. can have on the adoption of CDMA [technology] in China. Passage of this bill may still be perceived negatively for Qualcomm," the brokerage said. cbs.marketwatch.com

To: Ramsey Su who wrote (10725)	5/25/2000 11:32:00 AM
From: howardhu	Read Replies (2) \| Respond to of 13582

Let's carefully consider the options China Unicom has, option#1: build/expand current GMS -> rebuild W(DS)-CDMA (2/3 years later) option#2: build CDMA 95B -> upgrade to CDMA1X ->add HDR/3X option#3: directly build CDMA1X (few months from now) -> add HDR/3X (later) option#4: directly build W-CDMA (wait 2/3 years from now) Most the people on the thread think either option#1 or #2. However, I think that #3 is the most likely at this time. The reasons are: (a) it costs less than #2 or #1. (b) timing is just right, the network equipment 1X is available (?) now, the MSM5000 chip will be shiping in June (?), the handset for 1X will be available by the end of the year (?). (c) put more pressure on US to pass the PNTR bill (for this short delay/wait). If this reasoning is true, the annoucement from china is going to depend on the roll of 1X. I think that IJ mentioned few months ago that china may go to 1X early than everyone else.

To: Ramsey Su who wrote (10725)	5/25/2000 11:43:00 AM
From: JGoren	Read Replies (1) \| Respond to of 13582

One of the first things foreign countries have to learn about the United States is that what Congressmen and Senators say is not the policy of the federal government, and that in such debates, there is a lot of local politics involved for their constituencies. Our system allows these folks to spout off, and much of it, is for the purpose of achieving the result the Chinese wanted, i.e., approval of PNTR. I frankly think that the investment banking houses that have cdma connections should ask some very tough questions in the roadshow. I thought, as part of the license, China Unicom agreed to start building THIS YEAR a cdma system that could handle 10 mill. subs. If they are going to renege, then I don't think American investors should invest money because they can't depend on China Unicom to honor its commitments and the IPO could therefore be considered stealing money from them. GSM allied investment houses have played the game of FUD for years. I think it entirely appropriate that cdma allied investment houses should use the opportunity to protect turf, since it is entirely appropriate for the protection of the potential American investors. If they want our money, they darn well better honor the deal, and it needs to be made clear that the IPO will run into trouble if Unicom doesn't honor its prior commitments. If they try weasle tactics, then the investment community should stop being whores and should make it very clear that any American who invests is taking a risk that neither China Unicom nor the Chinese government can be trusted and that they may be throwing their money away. It's time to play hardball, because once the stock is bought there is no way to get Unicom or the government to honor the deal.

To: Ramsey Su who wrote (10725)	5/25/2000 12:37:00 PM
From: lkj	Read Replies (1) \| Respond to of 13582

Ramsey, For the first time, I have to say that the Nazi is wrong. China is very smart. It understands how US politics work and it knows that it's not the process, but the final decision, that matters. Corporate leaders in China are no dumb shit. In fact, they are as smart and informed as the best executives in the west. China Unicom will evaluate everything to make a decision on 1x/HDR or W-CDMA. The Chinese don't like the Americans, but neither do they like the Europeans or Japanese. This is all business. Who can give China the most control over the next generation technology will be the partner that China picks. Who cares what someone is saying on capital hill. It's all about what Jacobs has signed in China. Regards, Khan

To: Ramsey Su who wrote (10725)	5/25/2000 2:32:00 PM
From: qwave	Read Replies (1) \| Respond to of 13582

Maybe the FUD is an organized ploy by some corporation interested in the Q to drive down the stock price so that $150/share looks like a great offer to its shareholders. Thought I would give my "long shot" view since none of us really knows what is taking place WRT to the FUD and Q.

To: Ramsey Su who wrote (10725)	5/25/2000 10:21:00 PM
From: NinjaDancer	Read Replies (2) \| Respond to of 13582

Sorry, have no link to verify accuracy. ND ------------------------------------------------------ SSB reiterated strong buy and $200 target tonight. Over the past several days there have been two news stories that, in our opinion, have caused undue pressure in shares of QUALCOMM. The first was a story surrounding China Unicom and the "supposed" decision to choose GSM rather than use CDMA. The second was an article in Wednesday's South Korean papers indicating the South Korean Ministry of Information and Communication's (MIC) intention to eliminate handset subsidies. We believe the fears are overblown and we continue to rate Qualcomm with a 1H rating. In reference to the story surrounding China Unicom's intention to deploy GSM rather than CDMA we continue to point out to investors that any news that descends from China should be viewed as a "piece of the puzzle," (i.e. it is very difficult to make a prediction of what the whole picture will resemble when only looking at one piece). As we have stated in the past, we believe investors should view China as "pure upside" to any CDMA forecasts simply because analysts and industry gurus have been making predictions of the timing of CDMA in China for the past several years and to date there remains no commercial deployment. In fact, we would go so far as to view China as upside when the vendors start to get paid as opposed to when contracts are awarded and shipments begin. In the past, contracts have always been subject to change. We believe CDMA will eventually be deployed in China based on three reasons. First, China Unicom is entertaining 12 different equipment offers from manufacturers to build out its CDMA network. Secondly, the passing of the China Trade Bill on Wednesday in the House indicates that China's entry in the WTO is moving in the right direction. We point out that the delay of CDMA deployments in China was due to politics in China surrounding its entry into the WTO. We continue to believe that CDMA will be given the green light upon China's entry into the WTO. Third, If China Unicom were to focus on GSM, the migration path to 3G is W-CDMA. The second news item that has put pressure on QUALCOMM's shares over the past two days is the concern over South Korea's elimination of handset subsidies. On Wednesday the MIC indicated it was banning handset subsidies from the wireless service providers beginning on June 1, 2000. We believe this will have little, if any, impact on QUALCOMM for four reasons. First, this is the third time in 15 months that a handset subsidy reduction has surfaced in the South Korean market. The first time was on April 1, 1999 where the MIC forced operators to reduce their subsidies by 50%. The second time was on October 1, 1999 when 4 of the 5 operators in South Korea voluntarily lowered their handset subsidies. During the second and fourth quarters of 1999 South Korea added an average of 810,000 and 974,000 new subscribers per month, respectively. During 1998 Korea only added approximately 600,000 new subscribers per month with handset subsidies intact the entire year. Second, we believe the operators will continue to drive new subscription sales despite the elimination of the handset subsidy. We believe operators will find ways around this ruling to help entice potential customers to sign up for wireless service such as reducing the cost of service or providing a new subscriber several months of free service to offset the higher phone cost, which is the strategy used by operators in markets with high penetration rates despite the lack of handset subsidies (i.e. Finland). The biggest "near-term" impact surrounding the elimination of the handset subsidy is the potential impact to replacement sales. We believe this will have a slight impact to replacement handset sales this year as consumers must digest the new pricing environment. However we believe this will not have a long-term impact to replacement sales because of 1) the continued advancement in phones in the Korean market (i.e., lighter, increased functionality and battery life as well as increased "lifestyle" offerings) and 2) the deployment of data services, which will require a new handset. Third, we believe our current subscriber estimates for 2000 in South Korea are conservative. Through the end of April, South Korea added 3.4 million new subscribers. Our current estimate is for 5.5 million net additions for the full year. Based on our estimates, average net additions per month would slow to approximately 263,000 for the remainder of the year, which compares to an average of 850,000 per month for the first four months of this year. A scenario we believe will be unlikely. Therefore we believe any shortfall in replacement handset sales this year should be partially accounted for by better than expected subscriber growth. Fourth, the impact of South Korea on CDMA subscriber growth and handset sales continues to decline as regions like the U.S., Latin America, Japan and Australia/New Zealand continue to witness rapid subscriber growth. In fact, South Korea represented 48% of total worldwide CDMA subscribers at the end of 1999 down from 61% at the end of 1998. We estimate South Korea will represent only 35% of total CDMA subscribers by the end of 2000. In summary, we believe that the impact on QUALCOMM's shares as a result of these news items has been overblown. We would be buying at these levels given our continued believe that the long-term fundamentals for both QUALCOMM and the wireless industry remain intact.