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

To: data_rox who wrote (87639)	11/16/2000 5:25:16 PM
From: D.J.Smyth	Read Replies (2) \| Respond to of 152472

Data. Brazil has stated that all mobile 3g system upgrades will go to W-CDMA. Narrowband CDMA is relegated to the 2g narrowband range. Cdma2000 will not be deployed in the Brazilian market unless the current Brazilian Govt. and Anatel change their policies, which, at this point, is unlikely. The HEA project in Brazil (as well as India), although initially narrowband, must take into consideration the total, eventual cost of mixing 2g WLL cells with mobile 3g W-CDMA system environments. The 2g WLL CDMA system will not speak to the 3g W-CDMA system that is being tested now for build. Thus, HEA, in concert with ETRI is developing the future WLL chipset as a wideband cdma component or upgrade. Even if the first deployed WLL lines are to be 2g CDMA WLL kits, all remaining lines are subject to the stipulated government regulations for communicating with the 3g W-CDMA. These regulations take effect, essentially from 2001 and beyond. The Indian Govt. has given a less definitive position regarding transfering current fixed and mobile lines to a W-CDMA environment. But, if you view the current spectrum allocation talks within the Indian Govt. you'll note that W-CDMA is given much more weight. So, even though intial handsets may prove to be narrowband WLL systems, if HEA completes their 3G WLL W-CDMA based chipset project and completes it to internal specifications, it is more than likely you'll see a direct conversion to the 3g set for all remaining lines. In order for HEA's 2g WLL systems to communicate in a W-CDMA environment without interference, they must all be eventually converted. (Who picks up the conversion tab?) Given that W-CDMA is the interface of choice as stipulated by both Anatel and the Brazilian Govt., it is very doubtful that the Brazilian market will abide with full implementation of a 9.6kbps WLL system when they can have 384kbps WLL systems in W-CDMA instead. This situation would remain the same in Indian. Qualcomm probably makes money on the intial deployment, HEA builds at a likely loss in order to obtain a foothold for later conversion to the 3g system of choice. But, note, HEA is selling initial systems at cost or below cost given the cost structure thus far announced (to what extent would Qualcomm be inclined to bear a portion of the cost in order to gain this foothold?). In my thinking, though it is not a bad way to get a foothold, though. hei.co.kr hei.co.kr Hyundai Electronics Industries Enters the Wireless Local Loop Market June 08 Seoul, June 08, 2000 - Hyundai Electronics Industries Co., Ltd. (HEI) recently signed a contract to supply ICOTEL Inc. of Brazil with Wireless Local Loop (WLL) terminal components and technology. This sale accelerates HEI's entry into the Brazilian market, which is the largest WLL market in the world. ICOTEL has already completed its production and assembly line and is prepared to begin local production of its fixed wireless terminals, of which HEI is providing Complete Knock Down(CKD) kits. Under the terms of the contract, HEI expects to ship 1 million equipment kits, valued at approximately $200 million, to ICOTEL. Royalty fees for the transfer of technology will amount to an additional $7 million. Under the terms of the contract, HEI expects to ship 1 million equipment kits, valued at approximately $200 million, to ICOTEL. Royalty fees for the transfer of technology will amount to an additional $7 million. Although the global WLL market is currently in the early stages of development, the total number of subscribers is expected to exceed 100 million in 2004, then climb to 200 million in 2006. The markets showing the most rapid growth are Brazil, India, and China. The proven technology provided by HEI, combined with the market leadership that will result from this contract, will accelerate opening of the Code Division Multiple Access (CDMA) market in South, Central, and North America. Particularly in Brazil, economic development has triggered an increasing demand for telecommunications. As a result, Brazil is emerging as the world's largest CDMA WLL market. HEI was the first in the world to commercialize CDMA technology in 1996, and has since been supplying CDMA equipment to local customers in Korea. Now HEI has completed development of its IMT-2000 system and will soon provide trial service to Korean and overseas customers. HEI expects to complete a commercial launch of the IMT-2000 system by early 2001. The ICOTEL Inc., founded at Sao Paulo in 1983, is a specialized manufacturer of more than 400 kinds of electronic parts and products. The company also supplies Key Phones to Alcatel on an OEM basis.