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

To: Dennis Roth who wrote (234)	7/5/2000 9:38:24 AM
From: foundation	Read Replies (3) \| Respond to of 197443

The more I consider the Korean issue, the more I perceive Korean telcom announcements favoring wCDMA as meaningless at this point - aside from the resultant poor press. It is a strategically clever card for them to play at this point regardless their intentions ----> 1) There is plenty of time to chage positions when favoring a technology that does not yet exist. 2) There are no contracts or actions in the near or mid-term that would lock them into a position stated now. 3) Favoring wCDMA will give them bargaining leverage in dealing with CDMA suppliers and QCOM now. 4) They can build out CDMA 2000 on existing frequency if they wish - new spectrum is only needed to play Europe. 5) Considering #3 above, it would be rather stupid of them to state a preference for CDMA 2000 at this point. regards, blg

To: Dennis Roth who wrote (234)	7/5/2000 10:49:16 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 197443

Korea telecom firms say licence demand too costly telecomclick.com 07/05/00 12:07:41 PM Central Daylight Time SEOUL, July 5 (Reuters) - South Korea said on Wednesday it would charge mobile phone companies upwards of $900 million each for licences to offer next-generation services, which analysts said could wipe out the firms' profits for years. The Ministry of Information and Communication set a bid ceiling at 1.3 trillion won ($1.17 billion) and floor of one trillion won to avert a bidding war. ``We are concerned bidding costs by contestants might be passed on to service users later,'' the ministry said. But analysts said telecom firms would suffer if they have to pay such a high price, especially if they have the added burden of infrastructure costs. The next generation of services, called IMT-2000, will include third-generation mobile communications services for global roaming, high-speed Internet access, multimedia and real-time video-conferencing. IMT-2000 would begin commercial operation by early 2002 under 15 year licences. Half the fees are due up front, with the rest over 10 years, the ministry said. The attraction for telecommunications companies is an estimated 10 million IMT-2000 subscribers by 2005 and 20 million by 2009. Analysts expect the ministry to appoint just three service providers. ``At over one trillion won, operators are likely to see their break even point delayed by a year or two,'' Brian Yang, a telecom analyst at Shinhan Securities, said. FEES DWARF EXPECTED REVENUE He said the fees dwarf estimates for initial annual revenues expected from the services -- which the state-run Korea Information Society Development Institute has estimated at a combined 328.3 billion won in 2002 and 422.4 billion won by 2004. Revenues are expected to hit 1.4 trillion won by 2010. ``I think the fees for the IMT-2000 service are extremely high,'' said Yoo Jae-young, a spokesman for Korea Telecom (30200.KS), which is expected to bid for a licence. ``When the government awarded PCS (personal communications service) licences to three candidates in 1997, the licence fee was around 110 billion won.'' SK Telecom (17670.KS), another Korean heavyweight, was also expected to bid. Foreign investors own more than 30 percent of each company. Hanaro Telecom Inc (33630.KQ), a telephone and Internet service provider but relative newcomer to the mobile market, said the bidding favoured companies with existing infrastructure. ``The government is opting for three licences, favouring existing mobile carriers, while depriving new entrants of any chance,'' said Doo Won-soo, chief spokesman for Hanaro, which is leading a consortium to bid for a licence. Korea Telecom shares fell 1,000 won to 92,000 on Wednesday and SK Telecom dropped 6,500 won to 364,500. Hanaro fell 170 won to 7,900. The price for the licences however may seen small compared to some other countries. Britain awarded five licences for its next-generation UMTS (Universal Mobile Telecommunications System) in late April, with Vodafone (VOD.L) spending almost 6 billion pounds sterling ($9.09 billion). ($1-1115.2 won) ($1-.6602 pound) © 2000 Reuters Limited. All rights reserved.