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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (80187)	9/13/2000 11:06:02 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

The AT&T strategy of sticking to its existing technology, even though it could have adopted something better years ago, at no real extra cost, reveals two weaknesses in thinking among the directors of large corporations: 1. Planned obsolescence. Milk it for all it's worth and don't worry about adopting state-of-the-art technology. Get the maximum out of your initial capital investment, which means that you don't invest in anything new until the very last moment. 2. Market your wares to the lowest common denominator. Assume that people are satisfied with moderately clear voice transmission, plus a few, short email messages. Don't worry about making a truly versatile handset that could be used to obtain most of the info you need from the Internet. Don't worry about the transmission speed. After all, the lower performing equipment is cheaper and meets most people's needs. Meanwhile, tell your customers that this handset will do everything, and if your message is simple enough, they'll believe it. Why this strategy breaks down can be summarized in one word: Spectrum. AT&T is already so low on spectrum in some metropolitan areas, such as Washington, DC, that customers get more and more busy signals. It will only get worse because AT&T insists on using a system that requires more spectrum. If they acquire more spectrum to accommodate their outmoded technology requirements, the only result is to increase the cost of their network and reduce the return on investment. One of these days they'll catch on, but in the meantime, anyone considering investing in T or its wireless tracking stock is in for a disappointment. Art Bechhoefer