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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Webster who wrote (22899)	2/12/1999 3:17:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

Interview with John Major on Bloomberg this morning about wireless Knowledge. WK will provide users secure personal portal which will allow Internet access, access to Corporate LANs, calendar, email, Directory etc. The product will also enable the transmitted data to be viewed on cellphones, PDA's etc. The service will be provided to carriers somewhat similar in the way Visa provides credit card services to Banks. Also, WK's role in MS/BT deal will be announced.

To: Webster who wrote (22899)	2/12/1999 6:30:00 PM
From: Keith Feral	Read Replies (3) \| Respond to of 152472

Web: I agree with your point that infra is critical to the whole CDMA product line. The same technology going into handsets is going into infrastructure. If I were to play Devil's advocate, I could point out that a company must concentrate on it's comparitive advantages. If QCOM were to sell the division rather than do an OEM deal, it would give QCOM the money to really concentrate on it's ASICs and handsets. If the company were to really save $100 million per quarter in losses associated with infrastructure, that would have a profound impact on the EPS for the company. However, the company has reduced it's losses by 35% already. Does that mean that $65 million is an acceptable loss for the division per quarter? No, but I can see the cash register ringing up more operating income for shareholders. One thing was very interesting in the Sulpizio's comments - although the company has not done well in the US, QCOM has captured some great opportunities in emerging markets. These international opportunities would be very attractive to other companies. I have thought that QCOM's WLL would be an attractive opportunity for some of the service providers like MCI Worldcomm, ATT Wireless, or Sprint - not just the equipment companies. The spectrum that QCOM is competing for in Brazil offer an interesting opportunity international growth. One thing is certain - QCOM is builder stronger relationships with well capitalized companies in the international contracts it has arranged. Just think of the differences in success from partnerships in Russia & India to Mexico & Brazil. Back to my enthusiasm for infra, I must say that the cost cuts & better partnerships will make QCOM more successful. However, it would be crazy for mgmt not to discuss the possibility of selling the division. This process will create a stock price that is closer to the break up value of the company. I am more excited about mgmt from a strategic point of view than I have in the past. Less vision, more results. To be fair, the growth of CDMA from 7 million to 23 million to 50 million is the direct result of the vision or confidence that they had in their technology. Finally, their success is catching up with them. Sulpizio made a comment to the effect "Can we compete in the space that we created?" This mission statement for QCOM's mgmt will be a very serious topic within the company this year.