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

To: rf_hombre who wrote (710)	7/12/2000 7:35:17 AM
From: William Hunt	Respond to of 197603

Deutsche Telekom, VoiceStream Deal Could Bridge Wireless Standards By WILLIAM BOSTON and NICOLE HARRIS Staff Reporters of THE WALL STREET JOURNAL BONN -- Deutsche Telekom AG's bid to buy VoiceStream Wireless Corp. is a big gamble that Europe's digital phone technology will become the world standard. The German phone concern is in serious discussions to acquire VoiceStream in a deal that would be valued at significantly more than $40 billion, according to people close to the situation. Deutsche Telekom and VoiceStream both use a digital wireless technology called global system for mobile communications, or GSM. Although GSM is in more than 130 countries, much of the U.S. uses competing digital wireless technologies, such as code division multiple access, or CDMA, and time division multiple access, or TDMA. The big question is whether GSM, or its next-generation counterpart, ultimately wins in the U.S. The compatibility between the wireless networks of Deutsche Telekom and VoiceStream is so appealing to the German phone company that it could be ready to give Sprint Corp. the cold shoulder. For the Next Dance Deutsche Telekom Picks a New Partner * * * NTT DoCoMo Is in Talks to Buy a Stake in VoiceStream Wireless (May 31) Deutsche's bid for VoiceStream comes at a time when it was weighing making a bid for Sprint. Deutsche Telekom shares fell more than 3% on news of the German phone company's interest in VoiceStream. VoiceStream shares rose $14.125 to $139.0625 at 4 p.m. on the Nasdaq Stock Market. Sprint slipped $4.125 to $47.625 in New York Stock Exchange composite trading because investors now fear that there won't be a deal with Deutsche Telekom. Deutsche Telekom officials declined to comment. In the past few months, VoiceStream has quietly held talks with several suitors from Europe, Asia and the U.S. Tuesday, John Stanton, VoiceStream's chief executive, declined to comment on any potential transaction, pointing out that VoiceStream is concentrating on growing its own business. "Our principal focus is doing a great job of integrating the businesses that we've already bought and continuing to purchase licenses to be a national company," Mr. Stanton said in an interview. By teaming up with VoiceStream, a fast-growing U.S. wireless operator, Deutsche Telekom could bridge incompatible wireless standards that have frustrated its jet-setting corporate customers for the past decade. Deutsche Telekom and VoiceStream already have an agreement that allows their clients to "roam" between each other's networks, but a single network would offer more savings for both the operator and the consumer. Acquiring VoiceStream might not be the big bang that industry analysts have been expecting from Deutsche Telekom, but it could be a smart move as new networks emerge that bring the Internet to the mobile phone. The GSM standard is so successful that by the end of June 331.5 million people were using GSM networks, the lion's share of the 494.6 million digital wireless subscribers world-wide. By comparison, just 67 million -- largely in the U.S. and South Korea -- were using CDMA. BEST WISHES BILL PS This will be dead money if "Q" performs as expected !