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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 (265)	7/5/2000 12:45:27 PM
From: Sully-	Respond to of 197443

Brazil opens doors to GSM operators By Elizabeth Biddlecombe, Total Telecom 03 July 2000 The Brazilian cellular market is now fair game for the GSM fraternity following the decision by regulator ANATEL that spectrum in the 1800 MHz range will be released for the new Band C licenses. As part of its drive to introduce competition in the country, Anatel will be issuing between 3 and 10 licenses later this summer in newly drawn-up regional divisions. The licensing process will begin in August; it is hoped that operators will be ready for service six months after signing the contracts. Analysts expect the process could raise up to US$5 billion for the Brazilian government. There has been considerable external pressure over this issue. The GSM Association, the UMTS Forum and others lobbied for spectrum in the 1.8GHz range to be used, while U.S. trade groups such as the Inter-American Telecommunication Commission (CITEL) pushed for 1.9GHz, the same frequency as is used in the US. "The objective for the Brazilian government is to foster competition", said Rodrigo Parreira, senior consultant at Cluster Consulting in Barcelona. "It wants the largest number of windows open to migrate to '2.5G' and 3G in the best way. It is a matter of keeping all possible alternatives open." Although Brazil's population currently is about 160 million, only 40 million are regarded by the incumbent CDMA mobile operators as having an income level that would make them potential mobile users. Investment bank Bear Sterns predicts that the number of mobile connections in Brazil will grow to 29 million in 2003, from an estimated 18 million this year. If Anatel were to allow further CDMA developments, it would, in Parreira's words, simply be "developing competition with the same standard and the same [technological and service] limitations." Parreira expects that the usual big global GSM players will be eyeing up the market. "We should expect the large players moving there, with local partners in consortia. There have been rumours of Vodafone having an interest in Brazil." The GSM Association congratulated Anatel on what is called its 'visionary decision' to go for 1.8GHz licenses. "This is incredibly good news for Brazil," said GSM Association chairman Jim Healy. "It opens the door for Brazilian customers to roam with their GSM phones to North America, Europe, Africa, the Asia Pacific and of course to neighbouring South American countries. It also brings the full range of GSM's benefits, from seamless roaming to services such as Short Message Services (SMS). We are therefore thrilled to welcome Brazil to the GSM global wireless community." As well as highlighting the benefits to Brazil's economy, Healy also pointed out that the decision left the 1.9GHz frequency free for a smooth migration to 3G services in two to three years' time. In this regard, Cluster's Parreira cautioned that, "One should expect third generation services to appear later than in the U.S. or Europe. There is at least another two to three years needed to develop regular GSM services." Juan Carlos Jil, the Chairman of GSM South America, and the GSM Association's Global Roaming Forum, said: "As a South American, it is immensely satisfying to hear of this decision. Brazil is one of the most exciting opportunities for GSM deployment in the world. The benefits for customers in Brazil and across the continent as well as for globally mobile customers that visit are countless. "GSM is a proven, well-established, flexible and future proofed technology and customers in Brazil are the real winners, they will enjoy the many and diverse fruits of this decision," he added. totaltele.com

To: Dennis Roth who wrote (265)	7/5/2000 6:23:58 PM
From: quartersawyer	Read Replies (1) \| Respond to of 197443

<By leaving it up to businesses to decide on technology standards, the ministry said it hoped to encourage cooperation between operators and equipment makers> It's not too difficult to find other words for "cooperation" in Korea. There are a number of bargaining areas. Q royalties are probably not even in play; if they were, the effect of a reduction in the immediate context of a system buildout would not be very large. Months ago the tremendous cost of 3G systems became apparent in conjunction with publication of articles outlining equipment provider financing, as high as 100%. Qualcomm is disadvantaged in this action by lack of control over terms for providing a system (as anticipated particularly strongly by J. Goren here in March of '99). If Ericsson has moved CDMA infrastructure at all it's been with reluctance and foot shuffling. If Qualcomm could, maybe they'd subsidize the cost of 2G CDMA systems looking to market share and eventual upgrade, but they can't. That business of Brazil Opens Doors to GSM Operators is clearly opens palms, or opens Swiss accounts, or at least as a response to multi-billion-dollar outlays by Nokia, which has pledged not only new plants but as I recall is constructing a vast industrial city for fun and profit and to push GSM where it makes no sense except for the Brazilian bureaucrats' and government's share of the loot. Without infra- and handset divisions, Q is not in a position to give away a communications system. What Qualcomm does have are the assets and inclination to teach a man to fish-- in these technological waters, at least. With vast market share, competitive global position and royalties at stake, that seems to be happening in China. Korean operators will gracelessly do what they can to pay less . The end result-- Q does great, as seems obvious, barring "catatastrophe" (Jimmy Durante? ). Maybe it won't even get to court since intense pressure from 1X/HDR will be early and powerful, and since-- although the fate of our country is not dependent upon Q's success-- it may just be that Nokia is dependent on Q's ability and willingness to help complete and then under good terms without fanfare sign off on a face-saving "European" version of CDMA.)

To: Dennis Roth who wrote (265)	7/6/2000 8:16:22 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 197443

SK, LG, KT Likely to Be Chosen for IMT-2000 hk.co.kr In all likelihood SK Telecom, LG Telecom and Korea Telecom will have been selected as the operators of IMT-2000 (International Mobile Telecommunication) when the results are in. To be sure, Korea IMT-2000, a consortium set up specifically for the project, is vying hard, and the government has promised no preferential treatment would be given to existing service providers, but industry analysts have all but written them off. In setting the qualifications for IMT-2000 operators, the Ministry of Information and Communication said Wednesday following a consultation with the legislature that there will only be three licensees. And so this means one of the four aspiring companies will have to be left out of the pack and SK, LG and Korea Telecom simply have too much experience to allow that to happen. ``Chances are that IMT-2000 Korea will form a partnership with either Korea Telecom or LG Telecom since SK Telecom has said it will go it alone,'' said one industry analyst. While it appears to be an open and shut case _ three existing mobile communications service companies making the transition into IMT-2000 _ there have been voices of dissent. ``The government is asking for a maximum contribution of 1.3 trillion won from each operator and this is nearly 10 times what it was when the PCS (personal communications service) companies were selected,'' said one company official. In the case of IMT-2000 Korea, it said this is a citizens' coalition designed to provide the most ideal services to subscribers and so it is not fair that it is asked to make the same contribution as existing mobile communications service providers. The contribution, which will be used later to help cut service charges for subscribers, is actually a charge for buying the frequency. Recently, the French government sold the frequency for 5.2 trillion won. On the technical side, all companies are believed to be favoring the asynchronous system which is used in Europe but this is feared to wipe out the huge investment made in CDMA (code division multiple access) technologies and create trade friction with the United States which is use a synchronous system. ``We believe the European method is more advanced and better suited for Korea and the government did say that there is no limitation on the technology to be used,'' said one SK official. The company that is really feeling the heat is Korea Telecom since it is a state-invested company and is obligated to look out for the national and public interest and so the option is still open. ``It is difficult to tell for now, but if Korea Telecom decides to adopt the synchronous system, SK Telecom is likely to follow suit since it had until recently showed a preference for the American technology,'' the analyst said. And if the two companies decide to go with the American technology, there will be little alternative for LG Telecom but to converge and adopt the same system, the industry analysts said. ``Setting up the IMT-2000 network is going to require huge investment and the three companies will have to collaborate with each other one way or another and this means they will have to use the same technology,'' one analyst said. The IMT-2000 services are to go into commercial operation in 2002 when there is projected to be some 1.35 million subscribers, a number which will increase to 12.4 million in the year 2005 and surpass the 28 million mark in 2011. ÀÔ·Â½Ã°£ 2000/07/06 16:40