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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (22120)	8/5/2002 5:00:55 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Steve, the cost per minute from QUALCOMM's white paper didn't include marketing expenses, boondoggles, fraudulently obtained handsets, giveaways, competition, silly advertising of absurd price plans. I was getting ready to bid on spectrum in New Zealand but decided against it because Telecom New Zealand is in too strong a competitive position. We could sell minutes for a cent and make a profit, but Telecom's interconnection charges and other actions could wipe us out [if we couldn't hold on long enough for them to give up and accept competition was here to stay]. Actually, the cellphone consumer isn't getting a subsidy from shareholders and OPM, the managements were the main beneficiaries of OPM as well as the recipients of all the wild spending on offices, air travel, nice accommodation, meals, booze, advertizing, cars, the spectrum sellers and overpaid staff. That is all going to get sorted out soon and subscribers will get service at the cost of production plus enough to make a reasonable profit, related to bank interest rates, which are low. The days of wild extravagance are over. The days of competition are arriving. That will mean having cheap minutes to sell with high quality cyberspace services included. That means cdma2000. It has been a spectacularly wasteful period of human history. Now, it's back to normal: nose to the grindstone, shoulder to the wheel, back to the wall, ear to the ground, eyes on the ball, feet on the ground. Those who can manage that contortion will do well. Mqurice