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

To: Ihubber who wrote (59489)	1/26/2005 5:29:40 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<Thanks for the physics lesson> You're welcome. I'm happy to help. But here's another physics lesson and it's one that's counterintuitive for humans, who have evolved in a materialistic world. The bigger the pipe the higher the cost, was true for a long time, when pipes were made of clay, concrete or steel, but it's a different world now. With quantum tunnelling projects under way, things like the Eurotunnel could be dug 10,000 kilometres long at little cost. Data can be tunnelled right through cyberspace in hyperwarp drive. But back to more prosaic examples, the reason $100 billion was bid for spectrum in Europe was that CDMA enables a LOT more data to be squeezed through the aether at no more cost, so the spectrum was more valuable. Mathematics depends on processing power and processing power is not quite free, but not far off it. It's Fourier transforms and processing power which enable CDMA to perform its miracle function. So CDMA enables a big fat pipe to be built from base station to subscriber at no more cost than a clunky old analogue base station and subscriber device. Because of other matters, such as tiny phones due to radioOne and stuff like that, in fact the cost of providing big fat CDMA pipes is much, much less than that the olde analogue worlde of 1990 when clunky cellphones cost $thousands and service did too, while being low quality. The same process works behind the air interface too. Fibre carries a LOT more now than it could a decade ago at far less cost. Big fat pipes are getting cheaper, faster, more reliable, with higher quality. That's a reason why QUALCOMM is so good. The cheaper things get and the bigger and fatter the pipes, the more attractive mobile cyberspace will be to people. That means more money for QUALCOMM as everyone will buy half a dozen devices of various types, all powered by CDMA [and other things as options]. Mqurice