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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (221)	7/4/2000 6:54:57 PM
From: Dennis Roth	Respond to of 197217

Siemens: Looking To Strike it Rich in China telecomdirect.pwcglobal.com Posted on June 29, 2000 Siemens announced investments of over $1.5 billion dollars in Asia to develop its mobile business solutions, of which $1 billion will go to China. The company seeks to expand its existing GSM mobile networks and jointly develop the 3G TD-SCDMA standard. Siemens claims that increasing sales volume in the Asian market to be a top priority, as China currently accounts for over 30 percent of its worldwide mobile infrastructure sales. Experience has shown that there really isn't any gold in China. So why would a company like Siemens choose to invest such a substantial amount of money into a market that has proven so frustrating and fruitless to virtually all technology vendors attempting the assault? There have been many companies that have ventured into Chinese territory only to come back empty handed, as the realities of regulatory issues and the lack of financial wherewithal tore their dreams apart. While it appears that Siemens may be trying to cultivate the TD-SCDMA standard in a large population base, it is unlikely that this technology will stand up to other technologies like W-CDMA, also being developed in China. Even at about a dollar per person in the market, an investment of this magnitude hardly seems warranted given the history of dealings with China, leading us to wonder whether Siemens knows that just because it looks like gold, doesn't mean it is.