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

To: kech who wrote (28541)	11/6/2002 3:03:24 PM
From: slacker711	Respond to of 197155

Vesper CEO Luiz Kaufmann was quoted as saying last week that his company would bid for Band-D and -E PCS licenses in a government-sponsored auction on November 19. Vesper has yet to decide whether to buy the licenses alone or in a consortium. Vesper and fellow new entrant Global Village Telecom (GVT) have been unable to boost market share in the respective operating areas above 5% since they were licensed in 1999 to compete with incumbent fixed line operators Telemar, Telesp, and Brasil Telecom. Mobile telephony would give Vesper a new revenue stream, although the US$330mn the company plans to invest in its network is high, Bear Stearns analyst Alex Constantini told BNamericas. A year ago, one of the prime reasons given for the investment in Vesper was that Qualcomm was going to be paying an incredibly low price per POP for a nationwide license in Brazil. A year later, it turns out the spectrum they paid for is basically worthless. There is no other explanation for Vesper bidding on more PCS licenses. They could accomodate as many subscribers as they could ever hope to gain with their current WLL spectrum. To make matters even worse, the last time I looked the PCS spectrum in Brazil is in the 1800MHz region. They are going to be funding another one-off system in both infrastructure and handsets. At some point, Qualcomm is going to have to make the same decisions they made on Globalstar....are they throwing good money after bad? Slacker