Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Art Bechhoefer who wrote (8044)	3/2/2001 11:37:13 AM
From: Cooters	Respond to of 197414

Art, Here's an update after the NOK meeting, with some additional detail. Cooters ---- Nokia holds 3G briefing on network sharing By Paul de Bendern HELSINKI, March 2 (Reuters) - Nokia Oyj Abp <NOK1V.HE>, the world's largest mobile phone maker, held a small meeting with analysts on Friday to discuss third-generation (3G) mobile phone network cooperation among telecoms operators. The meeting comes at a time when European telecoms operators are under intense pressure to deliver on promises that the high-speed mobile Internet will be a success, especially as they are investing over $200 billion in networks and licences. Nokia said the meeting was only called to explain the technical details behind network cooperation. There is also increased concern that 3G will be delayed until 2003 or 2004 from earlier 2002 forecasts so some see network cooperation as a way to speed up its launch. "The hot topic at the moment is how many operators will decide to share the costs of building 3G, and this could obviously affect revenues of networks manufacturers like Ericsson and others," said a telecom analyst in Stockholm. "So this meeting, which I had not heard about until now, is interesting," he said. Nokia chief spokesman Lauri Kivinen said the meeting was small and informal and had been set up at the initiative of analysts to talk about the technical issues surrounding network sharing. Top Nokia management did not attend. Nokia, which gets about 70 percent of sales from handsets and most of the rest from networks, sees 3G network joint ventures as positive as it is one way for operators to quickly get 3G working and keep capital spending down in the short term. Nokia is keen to get 3G into operation quickly in Europe so it can also sell phones that work on those systems and also be able to then expand 3G networks further. Nokia was up five percent at 25.45 euros at 1400 GMT, off earlier highs, on the back of news it had won network orders from Swedish operator Telia <TLIA.ST> and Austrian operator ONE. Nokia outperformed rival Ericsson <LMEb.ST>, which traded up 1.3 percent at 79 Swedish crowns and the Dow Jones Europe technology stock index <.SX8P>, which was 1.1 percent higher. OPERATORS KEEN ON SHARING NETWORKS TO CUT COSTS Nokia networks spokeswoman Arja Suominen said this kind of cooperation would allow operators, especially in countries with many players, to keep capital expenditure down in the short term and postpone some investments to the long-term. But Suominen told Reuters that in the longer term network cooperation may not be as advantageous as operators may need more capacity than shared systems could provide. Worries about the commercial viability of 3G -- which will provide customers with fast mobile Internet access and video services over handsets -- has prompted credit agencies to cut their ratings on telecom companies' debt. Analysts say the 3G operators could lessen the financial strain on their businesses if they are able to join forces in building the third-generation network. The cost of these networks vary from around $1 billion in a small country to $5 billion in a large one, experts say. Swedish mobile phone operator Europolitan <EURO.ST> and consortium HI3G -- winners of 3G licences in Sweden -- have already teamed up to roll out their network. In Germany, several of the country's 3G or UMTS licences holders, including Finland's Sonera <SRA1V.HE>, British Telecommunication Plc's <BT.L> Viag Interkom, and France Telecom-backed <FTE.PA> MobilCom <MOBG.DE>, have shown interest in cooperating to build the networks. Ericsson is the leading seller of mobile phone network equipment. But Nokia, Canada's Nortel <NT.TO> and Germany's Siemens <SIEGn.DE> are also leading players in this field. 10:51 03-02-01