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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: brian h who wrote (8228)	11/17/2000 3:36:17 PM
From: Puck	Read Replies (1) \| Respond to of 34857

The MobilCom (Germany) contract has a very aggressive timetable for buildout because MobilCom executives want to have the first 3G network deployed in Germany. If Ericsson doesn't make the deadline, then Ericsson forfeits revenues from the buildout pure and simple, although Ericsson remains MobilCom sole equipment supplier. That's about as severe a penalty as they come. On the other hand, the MobilCom contract is extremely prestigious for Ericsson to have, especially as sole supplier, which they can use in their marketing. Ericsson also has the manufacturing volume to fulfill MobilCom's equipment needs easily. Ericsson has already begun booking 3G revenues and, I believe, is the first company to do so. I don't think the rather draconian contingencies in this contract are a big deal but they would be if they became conventional in Ericsson's deals.