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

To: slacker711 who wrote (20267)	3/12/2002 3:00:23 PM
From: Dennis Roth	Read Replies (1) \| Respond to of 196694

consumers have to purchase an saving card worth of several thousands yuan, China Unicom would bestow CDMA mobile phone free of charge. Maybe that explains what China Unicom is going to do with the 500,000 handsets they have ordered. Give them away to those who prepay for a lot of minutes or sign a long term contract.

To: slacker711 who wrote (20267)	3/12/2002 4:08:29 PM
From: David E. Taylor	Respond to of 196694

slacker: Unicom has too much CDMA capacity to allow it to sit idle. They have also committed to a certain number of lines from the parent company.....whether they fill them or not Exactly. They're locked into a lease for 2 million capacity through 3/31, then 4 million through 6/30. By 3/31, they have to commit to the capacity they need for 2002 Q3. So, they need to get the handsets to market and sign up the subs. David T.

To: slacker711 who wrote (20267)	3/12/2002 9:39:33 PM
From: slacker711	Respond to of 196694

KDDI is going to write off some assets. It sounds like it is all PDC....but I cant figure out how they could have 2.5 million PDC handsets in stock. Maybe they are writing off some cdmaONE handsets? EDIT....I see know that they are saying that are only going to write off a portion of the 2.5 million handsets (probably PDC). I hope the CDMA portion of the 2.5 million isnt too big....it would take a while to work those off once 1x starts up. Wednesday, March 13, 2002 KDDI To Post Y200bn One-Off Group Loss On Asset Disposals TOKYO (Nikkei)--KDDI Corp. (9433) will post an extraordinary loss of 200 billion yen in the year through March 31 from the disposal of idle assets, company sources said on Tuesday. The write-off, which will be announced on Friday, includes cellular phone base stations and inventories of mobile phones. The large phone company intends to improve its financial health by making itself more cost competitive in an effort to cope with slower growth in the mobile phone business. KDDI uses both cdmaOne and PDC standard cellular phones since its creation through the merger of three companies in October 2000. It will write off some 100 billion yen of 140 billion yen worth of PDC equipment and facilities at book value. The company will also suspend new subscribers to its unprofitable PDC operations. The firm is also expected to write off several tens of billion yen from its 2.5 million inventory of cellular phones as a one-off loss. Losses from the disposal of fixed-phone equipment and facilities will also be booked, resulting in a total extraordinary loss of 200 billion yen. KDDI plans to book an extraordinary profit of 140 billion yen, mainly through the securitization of its head office building, helping post a group net profit of about 5 billion yen, down from a combined profit of 21.7 billion yen before the merger. The phone company plans to reduce its capital investment by a total of 400 billion yen for three years from fiscal 2002 to help improve its financial standing in a new mid-term management plan to be announced on Friday. It planned to spend 470 billion yen to 490 billion yen annually in equipment and facilities in the previous plan compiled last May, but this will now be reduced to 350 billion yen a year. The company has concluded it has little option left but to cut capital investment as it struggles to lower interest-bearing debts from 1.8 trillion yen in fiscal 2001 to 1 trillion yen over three years. KDDI has also revised downward forecasts on sales and pretax profit from 3.9 trillion yen and 330 billion yen to 3.2 trillion yen and 270 billion yen in fiscal 2004, respectively, as the increasing popularity of inexpensive Internet Protocol phones eats into existing revenue. (The Nihon Keizai Shimbun Wednesday morning edition)