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

To: Ruffian who wrote (11794)	6/7/2000 9:32:00 PM
From: William Hunt	Respond to of 13582

Telmex, Bell Canada Prepare An Alliance in South America By ELLIOT SPAGAT Dow Jones Newswires MEXICO CITY -- Bell Canada International Inc. said Wednesday that it was in talks with Telefonos de Mexico SA about creating a joint venture in South America, the latest sign of shifting global alliances in the telecommunications industry. The announcement fueled speculation of a more prominent role in South America for SBC Communications Inc., the U.S. carrier that owns 20% of a Bell Canada International sister company and 8.9% of Telmex, Mexico's dominant carrier. Bell Canada said it was in talks with Telmex "regarding a possible joint venture in South America," but declined further comment. Telmex declined comment; SBC officials also weren't immediately available. Analysts said an alliance between the two would be powerful, especially in Brazil, which is already a priority for Telmex and Bell Canada. "If Telmex wants to be a credible regional player, they need a big presence in Brazil," said Matthew Hickman of ABN AMRO Bank in New York. "This gets them exactly where they want to be." Bell Canada would benefit from a closer relationship with SBC and from Telmex's deep pockets to finance expansion requirements dictated by its Brazilian concessions, Mr. Hickman said. Bell Canada International's shares jumped 5.6%, or 2.05 Canadian dollars, to C$39 on the Toronto Stock Exchange Wednesday. Telmex shares fell amid a broad market decline on jitters ahead of Mexican presidential elections July 2. Its shares trading as American depositary receipts slid 4.2%, or $2.1875, to $49.75 on the New York Stock Exchange Wednesday. Its shares fell 2.4%, or 60 centavos (six cents), to 24.60 pesos ($2.50) on the Mexican Stock Exchange Wednesday. Telmex, which received a coveted investment-grade credit rating Wednesday from Moody's Investors Service, has forged closer ties with SBC through joint investments over the last year as it expands outside Mexico. Telmex and SBC each own 50% of Algar Telecom Leste SA, a Rio de Janeiro mobile carrier known as ATL. They jointly own Cellular Communications of Puerto Rico Inc., the largest cellular carrier in Puerto Rico and the U.S. Virgin Islands. Telmex and SBC are also partners in the U.S. through Internet company Prodigy Communications Inc. and carriers Williams Communications Group Inc. and Network Access Solutions Corp. Telmex and SBC plan to buy minority stakes in U.S. computer retailer CompUSA Inc. "It's very clear that Telmex and SBC are going into South America together," said Francisco Rivero, head of Mexico equity research at Santander Investment Securities. "Now they'll have another strong partner." Bell Canada International, a unit of Montreal-based BCE Inc., has a 34% stake in Vesper SA, a Brazilian local carrier that aims to reach 70 cities by the end of the year. Vesper, which is also backed by Qualcomm Inc., plans to invest $5 billion over five years. It launched voice operations in January and has about 150,000 lines. Bell Canada International also owns 54.7% of Canbras Communications Corp., a Brazilian cable operator with about 100,000 pay-television subscribers in the Sao Paulo area and 50,000 telephone subscribers in Sao Paulo and Rio de Janeiro. It has 16% of Americel SA, a mobile carrier that reports 250,000 subscribers in western Brazil, and 16.3% of Telet SA, which reports 250,000 mobile subscribers in Brazil's southern Rio Grande do Sul state. Bell Canada International also has a 55% stake in Comcel SA, a mobile carrier with 750,000 subscribers in eastern and western Colombia. The alliance could comprise Telmex's ATL and Bell Canada's Vesper, Canbras and Comcel, leaving Axtel SA excluded from the deal. Axtel is a Mexican carrier that is 27.4%-owned by Bell Canada International and has about 100,000 subscribers in Mexico City, Monterrey, Guadalajara and Tijuana. Telmex dominates the Mexican market with 11.2 million fixed lines and 6.5 million mobile subscribers. Dvai Ghose, an analyst at CIBC World Markets in Toronto, said Vesper is the "jewel in the crown" of Bell Canada International's Latin America operations.

To: Ruffian who wrote (11794)	6/7/2000 11:03:00 PM
From: idler	Respond to of 13582

longer response by GG to Wireless Watch On Being Gildered date: 6/7/00 12:32:09 AM Gee, whiz. After eight years of being described as the vendor of a Qualcomm securities scam in violation of the laws of physics, now I am extreme and hyperbolic for pointing out the flaws in TDMA. The next post describes the rollout of CDMA2000 in Korea at the end of this year. TDMA EDGE is at least two years behind and five times slower. It will not happen. My critic implies that the Qualcomm advantage is small. It is large and growing larger. Perhaps the Japanese will manage to concoct a competitive version of WCDMA before Qualcomm does. We will see. But the power efficiency, capacity, and bursty data capabilities of the CDMA side will become increasingly evident in both mobile and wireless local loop applications. LEAP wireless has interesting plans to demonstrate the superiority of CDMA in wireless local loop. In Chatanooga, the company has already taken over 7 percent of the fixed local loop market with a $30 per month all you can use product that also can be employed as a mobile. The local loop is where the capacity limitations of the ATT system will be most crippling. GSM does have huge volumes and will be an important force. But GSM is not going to pursue EDGE in the face of a Qualcomm demonstration of a fivefold more powerful system, available earlier. As for AWE, it just has a huge marketing budget and alot of ad hominem arguments. It will not prevail. --GG