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

To: 100cfm who wrote (3742)	10/16/2000 9:17:18 AM
From: Snowshoe	Read Replies (1) \| Respond to of 197154

From Briefing.com... 09:14 ET ****** Qualcomm (QCOM) 69 15/16: Isn't it about time for another headline out of China relating to Qualcomm's chances of breaking into the coveted China market? More and more signs are pointing to China coming into Qualcomm's camp. Qualcomm is trading up over $4 in the pre-market after it was learned that QCOM and Chinese phone equipment maker ZTE Corp. will unveil a CDMA prototype handset today. Also, a senior official from China Unicom said that it will use CDMA technology from Qualcomm to build a narrow-band mobile phone network in China. The official the company would build narrow-band networks in addition to expanding trial networks but the timing of the start of the construction depends on formal approval from the Chinese government....Since it has gotten confusing, here's a quick recap: in June, China Unicom said that it will not adopt CDMA, then a week later they say they'll begin testing in 2001 followed an announcement in September that China Unicom may build a CDMA network....The news of the deal with ZTE a positive announcement in the sense that it will not be contradicted next week. This summer, different Chinese government officials were being inconsistent with one another as to which technology would be adopted and when. This announcement appears more solidly based....Bear Stearns views the announcement as providing additional confirmation that China will deploy CDMA and will benefit QCOM more from a chipset sales perspective than on royalties as China's royalty rate is about half of normal rate: (2%-3% vs. normal 5%-6%)....If China does indeed give the nod to Qualcomm, it would be a huge boost for the company - management said a deal would substantially raise 2001 and 2002 sales forecasts. We continue to believe that Qualcomm's superior technology will eventually win out and recommend buying and holding rather than trying to play each headline coming out of China. -- Robert J. Reid, Briefing.com