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

To: quartersawyer who wrote (58059)	1/1/2007 7:24:06 PM
From: slacker711	Read Replies (2) \| Respond to of 197456

If they actually scrapped the CDMA network instead of multiplying it , it would be negative for sure. Is that what you see happening in India-- committment to GSM?? TRAI says not. Reliance has 25 million CDMA subs, Essar has 23 million GSM subs. They arent going to scrap their CDMA network, but Reliance has given every indication that they are shifting their focus to GSM. This means that capex, marketing, subsidies, shelf space and management attention are all going to move towards their GSM network. The Reliance CDMA network will likely continue to attract subscribers but it will be at a substantially slower rate than in '06 and overall CDMA handset sales will go down in India. Maybe Qualcomm's low end dual mode chipsets aimed at the mass market isn't a wasted effort? Qualcomm has been listing dual mode chipsets on the slides for the last five years and they have yet to make a dent in the market and I doubt that anything is going to change significantly now. These handsets are always going to be more expensive than their equivalent CDMA or GSM counterparts and they will also suffer from smaller economies of scale and lack of major vendor support. I just dont see much of a market for these handsets. Slacker