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

To: arun gera who wrote (6334)	1/21/2001 11:43:07 AM
From: JohnG	Read Replies (2) \| Respond to of 197036

From 7/1/1998 US Embassy Report. I wonder if this estimate of annual demand of 1.5 to 2 million WLL phones plus 3-6 million regular phones is at all accurate. Once the networks are in place, I wonder what is the marginal cost of adding and servicing an additional subscriber--the cost of 1 phone plus next to nothing to provide service. Also, I wonder what is the substitution effect between regular phones and WLL phones as well as between existing cell phones and WLL phones. It amazes me that a country that fills US grad schools with engineering candidates can remain so poor. They must really stifle free enterprise over there. ""A. MARKET HIGHLIGHTS AND BEST PROSPECTS: Overview The Department of Telecommunications estimates that the market for WiLL telephones will be 1.5-2 million per annum from 2000-01. The annual market for basic telephones will rise from the existing three million (demand from the Department of Telecommunications) to 5-6 million in 1999-2000 and to 7-8 million by the year after that. The prices of WiLL telephones currently rule at $250 (Rs. 9,750) a set, but are expected to drop to the $150 (Rs. 5,850) level once production volumes increase. In other words, the domestic WiLL telephone market is estimated at US$ 225-300 million (Rs. 880-1,170 crore). The investment of the vendors is going to be in the range of $10-20 million (Rs. 39-78 crore). The minimum economic capacity in a telephone set manufacturing facility is about 500,000 units a year.""