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: elmatador who wrote (11042)	5/29/2001 8:59:01 AM
From: Art Bechhoefer	Respond to of 197248

elmatador, although there is some basis for suggesting that an Alcatel-Lucent deal might result in the elimination of CDMA2000 as a viable alternative to WCDMA, it's not likely. One example that supports your theory is an actual case, where Parker Brothers, the owner of the board game "Monopoly," purchased a similar game, known as "The American Dream," in which the Monopoly businesses were replaced by real ones (e.g., McDonalds) deliberately kept the new game out of circulation to protect its monopoly on "Monopoly." The same logic probably does not apply here, thanks to the care taken by Irwin Jacobs to make sure that China and Korea would have several companies able and willing to provide CDMA2000 infrastructure and handsets. If the system works better and at less cost than its competitors, why would the competitors throw away their licensed rights to compete in a world market? It would also mean a combined Alcatel-Lucent throwing out the existing Lucent contract to supply CDMA2000 infrastructure to China, wouldn't it? Art

To: elmatador who wrote (11042)	5/29/2001 11:35:52 AM
From: marginmike	Respond to of 197248

Ericy doesnt need it, they got Qcoms unit. I do agree that NOK should have been in there, but who knows maybee they want NT instead-ng-

To: elmatador who wrote (11042)	5/29/2001 11:54:43 AM
From: cfoe	Read Replies (1) \| Respond to of 197248

If CDMA would have been so important for the Euro vendors, then NOK, SI and ERICY would have competed with AAL for LU. But none did. I will offer you two reasons for this. First, $34 billion or maybe only $23 billion, is still a lot of moola; lots of stock dilution - even for NOK and SI. ERICY is a basket case; plus, as others have pointed out, they already own a CDMA infra business. Second, ALA and LU businesses have lots of overlap, so lots of cost cutting opportunities - $4 billion according to initial statements. I doubt any of the NOK, SI and ERICY had similar synergies. Oh and a third reason is I doubt they could pull off a "merger of equals" (although we'll see if this actually happens here as well). Another thought. If memory serves me correctly, France (sic) Telecom was the first Euro SP to delay GPRS and say that its performance was disappointing and not up to its promises. They did this many, many months ago. I wonder if Ala is a major supplier to F. Telecom?