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

To: 100cfm who wrote (23029)	5/28/2002 10:53:29 AM
From: David E. Taylor	Read Replies (1) \| Respond to of 196812

100cfm: Take a look at slides 52 and 53 from the 5/22 analyst meeting. Slide 53 shows that at $12 data ARPU, carrier profit is $10.60 after all costs. So they could cut rates 50% to drive usage and still make a healthy profit. Slide 52 shows that with a 50% price cut, GPRS would be barely break even and maybe even lose money. As this data pricing comes down and data subscription usage increases, the non-CDMA carriers are going to get a severe case of financial indigestion. I'm going to wait with interest to see what the doom and gloom factions have to say about China Unicom after a year or so of 1x and 1x EVDO vs. GPRS. David T.