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To: Wyätt Gwyön who wrote (110489)	1/8/2002 3:34:32 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

what do you expect as ASPs there for CDMA? I dont have a great handle on where current ASP's (in China)are so I would probably need a little more data for a good answer. I think the key variables will be the ability of Unicom to position CDMA as a high-end alternative and the adoption of wireless data in China. Integretating cameras, MP3 players, color screens, and Java are going to be the drivers of ASP's for the rest of the world. I dont really know how well this will translate in China. another wildcard might be what happens with the Asian currencies. the recent JPY devaluation is very unpleasant to Beijing. if competitive devaluation takes off and they devalue, all bets are off. This has been talked about for at least the last three years. If it does happen it will have a pretty big effect on the world economy...I doubt that I will notice the drop in Q's income from China. One additional point....I want to make it clear that I have never believed that China is going to principal driver of Q's earnings. It is an incremental addition. If Q can get 15% growth out of it's current markets, perhaps China can increase the overall growth rate to 25%. This would be the difference between a mediocre year and a decent year. If Q is going to have a great year they will need W-CDMA to roll-out. Slacker

To: Wyätt Gwyön who wrote (110489)	1/8/2002 5:50:19 PM
From: David E. Taylor	Read Replies (2) \| Respond to of 152472

Mucho: This post from last November had some useful info on handset selling prices in China, and, if the article is correct, they're not as low as some skeptics have been claiming: Message 16688792 "Average" SP per JP Morgan - $181 MOT "low priced" T189 - $157 60% of market was for phones with ASP's $182 or less (1500 yuan) "High end" users buy phones with ASP's $300 - $360 (2,500 - 3,000 yuan) These prices are all (I assume) for GSM handsets, but CDMA handsets will certainly be competitive in price. To continue subscriber growth in China at historic and forecast levels, I'd expect that Mobile and Unicom will have to introduce handsets that are below $150 and maybe down around $100 in price, with monthly usage pricing plans to suit. Lower cost handsets are the motivation behind the recently announced QCOM MSM 6000 CDMA 1x chipset. David T.