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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (27460)	7/7/2000 10:18:26 PM
From: Mike Buckley	Read Replies (4) \| Respond to of 54805

Korea Konfusion Please let me know if I've got anything blatantly wrong in any of the following 8 points. 1) Bloomberg (or was it Dow Jones?) issued a piece Thursday afternoon saying Korea would go the route CDMA2000. Later that day, the other media company issued a piece saying Korea would go the route of WCDMA. The next day (Friday), Dow Jones issued a report that Ericcson and Nokia are saying that Korea hasn't made a selection yet. Nokia spokesperson Megan Matthews was quoted as saying, "Certainly, we haven't seen any official decisions." Also on Friday, Reuters issued a piece saying Korea "may" use WCDMA and that right now Korean officials are "favoring" WCDMA. 2) Other than the quote referenced above, none of the four pieces have been attributed to any particular person nor have they been verified or corroborated by any official press release issued by Korea. 3) According to Qualcomm, WCDMA will not be available for deployment until about 2 or 3 years from now. Contrast that with CDMA combined with HDR which, according to Qualcomm, will be available by the end of next year. 4) Korea can use EXISTING spectrum for CDMA2000. That spectrum will be more efficient (less costly) using CDMA2000 than the current CDMAOne. If those pieces about Korea choosing WCDMA in lieu of CDMA2000 are correct, it is not about current spectrum. Instead, it is about future spectrum that the Korean Telcom will have to spend between $.9 and $1.3 billion because that's the price the Korean government is demanding. 5) The Korean government has supposedly held to a "reasonable" price for spectrum. In reality, they have to keep the price low enough for future spectrum because CDMA2000 used in existing spectrum may be sufficiently efficient that it delays the need for the purchase of additional spectrum. 6) Korean companies own the largest market share of CDMA. It's not logical that they would abandon that market. If they do go with WCDMA in some spectrum, it will be because they want part of that market also. 7) Nokia has a contract with Korea-based Telson to manufacture CDMA-based product. Qualcomm believes that is for CDMAOne product. If Nokia wants Telson to supply CDMA2000 product, Nokia has to first become a Qualcomm licensee for CDMA2000 because it currently is a licensee only for CDMAOne. 8) Qualcomm Investor Relations understands that people are confused and hopes to clarify issues in their July 19 conference call. --Mike Buckley