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

To: marginmike who wrote (94721)	2/27/2001 11:41:24 AM
From: Keith Feral	Respond to of 152472

VOD completed the puchase of ATT's 10% position in Japan Telephone. They now have a 25% equity position. Good news for CDMA2000, WCDMA, 1xEV, GPRS, AMPS - definitely not EDGE. VOD can now harmonize their WCDMA networks with their Verizon CDMA2000 networks in the US thanks to Qualcomm's new multimode chipsets.

To: marginmike who wrote (94721)	2/27/2001 12:06:08 PM
From: Pierre	Read Replies (4) \| Respond to of 152472

It seems the reality of a 3G delay in GSM land is beginning to settle in. It will be interesting to see just how hard the wireless sector gets whacked. Clearly the added revenue of 3G deployment on an accelerated time table was factored into the market. It is now in the process of being factored out. IJ advised that a delay in w-CDMA roll out was a major concern. He has acknowledged that this worst case scenario is now in place. So what next for QCOM? Well, from my perspective, nothing but downward pressure until QCOM can differentiate itself from the overall sector perception. Either of two events could do that, and IMHO we'll get announcements soon - or not at all. First is Europe. I think IJ's European tour was an attempt to turn lemons into lemonade. QCOM has 3G technology ready to deploy. Surely the industry has been aware of this for some time. Yet, for political reasons, the GSM camp opted for another flavor. Technology was losing the political war. Now, however, the field changes dramatically. IMHO, this is the first time GSM carriers have had a meaningful reason to opt for QCOM products - whether it be a 1xev overlay, or a pure play cdma 2000. If there were ever a time that Europe might embrace QCOM, this is the time. IJ recognizes the opportunity, and is striking while the iron is hot. If, and it's a huge if, there is a defection in Europe, QCOM will have successfully separated itself from the wireless pack in terms of wallstreet perception. In short, the acknowledged delay in w-CDMA roll out has given QCOM a singular opportunity to crack Europe. The opportunity will not repeat itself, so it's now or never IMHO. Second is China. The reports of Unicom's build out have been shrugged off entirely by the market. I suspect the "cry wolf" phenomenon coupled with the dismal over all wireless sentiment is the reason. Still, should hard evidence sufficient to convince wall street that China is rolling out CDMA in volume finally appear, that too will separate QCOM from the wireless sector in terms of perception. I would like to see some transparency from IJ at the shareholder meeting, or the cc following. IMHO he needs to acknowledge that QCOM revenue projections in the near term have been tied to the timely roll out of 3G. He then needs to explain how QCOM can position itself to accelerate earnings despite the delay. What is happening in China? Who from Europe is talking to QCOM, and what is the likelihood of penetrating that fortress? This is, IMHO, no time to play "hide the baby." It may be a long way down for the wireless sector. QCOM needs to differentiate itself to avoid falling with it. Pierre