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To: pcstel who wrote (106375)	10/6/2001 3:24:23 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

Well, if all the operators used the same technology.. Then there would be a floor in pricing.. You seem to be implying that there is no floor in pricing due to the fact that the US has multiple technologies. This is obviously false. The floor for any commodity product is wherever the most efficient producer can remain profitable. In the wireless case this is the CDMA carriers. Look at Dell....they kept prices higher than they needed to up until this year. They started cutting prices to the bone and they are absolutely killing HP, CPQ and Gateway. This is what will eventually happen in the wireless industry. Right now prices are higher than where they could be....but eventually the superior cost structure of CDMA carriers will win out. The company with 4X the capacity may receive a short term windfall.. But as the other competitor lowered their per minute tariffs in order to compete with the first. The point I am trying to make is that the non-CDMA carriers can lower their per minute tariffs but they won't be able to handle the increased traffic. It is a vicious circle for these carriers. So you spend Billions to maintain flat ARPU!! No...you are spending Billions so your ARPU wont go down!!! Big difference... You have never answered my question....do you think that Hutchinson Whampoa is going to install a GSM network in their UMTS spectrum? They would be the first greenfield GSM operator in most of the European countries in five years. Slacker