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


To: GO*QCOM who wrote (30277)12/21/2002 9:35:00 AM
From: talksfree  Read Replies (3) | Respond to of 196612
 
Why Nokia Would enter this market? I believe there are a number of reasons why Nokia would aggressively go after the WLL market. The India WLL market presents an unique opportunity for Nokia to pursue CDMA market without eroding its GSM/GPRS base. In almost every other market, if Nokia were to aggressively pursue the CDMA market, it would run the risk of having people defect from the GSM,TDMA systems to CDMA. Since it is Nokia's best interest in the long run to keep the GSM world as strong as possible until the WCDMA deployment, it cannot risk major and varied deployments in the US, Latin America, etc. It does have some handsets, but nothing like the array it has for the GSM world. It essentially has produced enough handsets in the CDMA world to tell its shareholders that it is actually pursuing the CDMA market, without really affecting its base.

India, by contrast, is unique. The Wll market is only a CDMA market. If you assume that the Wll marketplace is different than the cell phone market, then, because there is no GSM competitor in the WLL market, Nokia has nothing to lose. If it can take over a major portion of the market share, it will be doing so in a virgin market place, without any erosion of the GSM base. It can effectively pursue the GSM cell phone market aggressively along with the WLL market with no risk.

In addition, the India WLL market is ready made for the low cost phones, and Nokia's expertise is in the low cost portion of the market.

Bob