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Qualcomm climbs after analyst upgrade Tue Sep 20, 8:48 PM ET
http://news.yahoo.com/news?tmpl=story&u=/sddt/20050921/lo_sddt/qualcommclimbsafteranalystupgrade
NEW YORK (AP) -- Shares of wireless technology firm Qualcomm Inc. (Nasdaq: QCOM) rose Tuesday following an upgrade by Goldman Sachs, which said the company should benefit from Europe's adoption of "third-generation" wireless service.
Analyst Brantley Thompson said Qualcomm could gain as much as 20 percent to 25 percent over the next 12 months, noting a third-generation carrier promotion during the second half of this year as well as an improvement in devices and phones compatible with that standard.
Thompson boosted Qualcomm to "Outperform" from "In Line." However, the analyst cut Juniper Networks Inc., a maker of Internet protocol routers, to "In Line" from "Outperform," saying that while strong demand for carrier routing and recent acquisitions will lift near-term results, concerns remain about risk in the company's business strategy.
"Put simply, while we continue to see upside for Juniper, Qualcomm offers greater upside and less risk, in our view," Thompson wrote in a research note.
On the Nasdaq, Qualcomm shares rose $1.29, or 3 percent, to $44, while Juniper shares gained 43 cents to $23.69.
QUALCOMM Increases Financial Guidance for the Fourth Quarter and Fiscal Year Ending September 25, 2005
Wednesday September 21, 8:30 am ET
http://biz.yahoo.com/prnews/050921/law044.html?.v=29
SAN DIEGO, Sept. 21 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today increased its financial guidance for the fourth fiscal quarter and fiscal year ended September 25, 2005.
The following statements are forward-looking and actual results may differ materially. Please see Note Regarding Forward-Looking Statements at the end of this news release for a description of certain risk factors and QUALCOMM's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
Pro Forma Defined
Consistent with the second and third quarters of 2005, pro forma results exclude the QUALCOMM Strategic Initiatives (QSI) segment and one-time tax benefits related to fiscal 2004 recorded in the second and third quarters of fiscal 2005, and year-over-year changes are calculated as if the "New Method"(1) of recording royalties had been in use in the prior year.
Business Outlook
Based on the current business outlook, we are increasing our revenue and earnings guidance for the fourth fiscal quarter. We now anticipate fourth fiscal quarter revenues for QUALCOMM pro forma to be in the range of approximately $1.48 -- $1.58 billion, an increase of approximately 8 -- 15 percent year-over-year. We now anticipate fourth fiscal quarter pro forma diluted earnings per share to be approximately $0.32 -- $0.33, an increase of approximately 7 -- 10 percent year-over-year. This estimate is based on the shipment of approximately 40 million MSM phone chips during the quarter compared to 39 million in the year ago quarter. On July 20, 2005, we estimated fourth fiscal quarter pro forma revenues in the range of approximately $1.43 to $1.53 billion. We previously anticipated fourth fiscal quarter pro forma diluted earnings per share of approximately $0.29 -- $0.31 and estimated shipments of approximately 38 to 40 million MSM phone chips.
The majority of our licensees have reported royalties in our fourth fiscal quarter for products shipped in the June quarter. Based on these reports we estimate June quarter shipments of approximately 48 million CDMA and WCDMA units at an average selling price of approximately $213 compared to our prior estimate of approximately 43 -- 45 million units at an average selling price of approximately $215.
"3G CDMA market momentum is strong," said Dr. Paul E. Jacobs, chief executive officer of QUALCOMM. "We are seeing strength across many geographies in shipments of 3G CDMA handsets. During the June quarter, both CDMA and WCDMA handset shipments increased sequentially in most regions of the world. The increase of 3 -- 4 million handsets, as compared to our prior guidance, is primarily attributable to greater CDMA2000 handset shipments to North America, Latin America, and the rest of the world. We are very pleased with the degree of traction our CDMA2000 1x EV-DO and WCDMA chipset solutions have received from device manufacturers. Consumers continue upgrading devices to take advantage of the many data services and advanced features that are now available on 3G CDMA networks."
Our pro forma earnings estimate for the fourth fiscal quarter includes $0.02 reduction in earnings per share for $35 million of additional tax expense for fiscal 2005 related to our decision to repatriate on a one-time basis $500 million of foreign earnings as provided for under the American Jobs Creation Act of 2004, and $0.01 increase in earnings per share for $18 million of investment income related to the expiration of a put option sold in connection with our stock repurchase program which expired in September 2005.
The following table summarizes total QUALCOMM and pro forma results for fiscal 2004 and guidance based on the current business outlook for fiscal 2005. Total QUALCOMM results for fiscal 2004 reflect only partial economic performance of the Company's licensing business in the fourth quarter of fiscal 2004 due to the prospective change to the New Method during that period.
Due to their nature, certain income and expense items such as realized investment gains or losses in QSI and asset impairments cannot be accurately forecast. Accordingly, the Company excludes forecasts of such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
The following estimates are approximations and are based on the current
business outlook:
Business Outlook Summary
FOURTH QUARTER
Prior Year Prior Guidance Current Guidance
Q4'04 Q4'05 Q4'05
Results Estimates Estimates
QUALCOMM Pro Forma
Revenues $1.4B $1.43B - $1.53B $1.48B - $1.58B
Year-over-year
change increase 4% - 12% increase 8% - 15%
Diluted earnings
per share (EPS) $0.30 $0.29 - $0.31 $0.32 - $0.33
Year-over-year
change decrease 3% - increase 7% - 10%
increase 3%
Total QUALCOMM
Revenues $1.1B $1.43B - $1.53B $1.48B - $1.58B
Year-over-year
change increase 28% - 37% increase 32% - 41%
Diluted earnings
per share (EPS) $0.23 $0.28 - $0.30 $0.32 - $0.33
Year-over-year
change increase 22% - 30% increase 39% - 43%
EPS attributable
to QSI $0.03 ($0.01) $0.00
Metrics
MSM Shipments approx. 39M 38M - 40M 40M
CDMA/WCDMA
handset
units shipped
(Jun Qtr) approx. 40M 43M - 45M 48M
CDMA/WCDMA
handset
unit wholesale
average
selling price
(Jun Qtr) approx. $212 $215 $213
FISCAL YEAR
Prior Year Prior Guidance Current Guidance
FY 2004 FY 2005 FY 2005
Results Estimates Estimates
QUALCOMM Pro Forma
Revenues $5.0B $5.55B - $5.65B $5.6B - $5.7B
Year-over-year
change increase 10% - 12% increase 11% - 13%
Diluted earnings
per share (EPS) $1.07 $1.13 - $1.15 $1.16 - $1.17
Year-over-year
change increase 6% - 7% increase 8% - 9%
Total QUALCOMM
Revenues $4.9B $5.55B - $5.65B $5.6B - $5.7B
Year-over-year
change increase 14% - 16% increase 15% - 17%
Diluted earnings
per share (EPS) $1.03 $1.22 - $1.24 $1.26 - $1.27
Year-over-year
change increase 18% - 20% increase 22% - 23%
EPS attributable
to QSI $0.01 $0.05 $0.06
EPS attributable
to tax benefits
related to 2004 $0.04 $0.04
Metrics
Fiscal year*
CDMA/WCDMA
handset unit
wholesale
average
selling
price approx. $205 $215 $215
* Shipments in Sep. to June quarters, reported Dec. to Sep.
Sums may not equal totals due to rounding
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
Pro forma financial measurements are used by management to evaluate, assess and benchmark the Company's operating results, and the Company believes that pro forma reporting represents relevant and useful information that is widely used by analysts, investors, and other interested parties in our industry. The Company presents pro forma financial information excluding the QUALCOMM Strategic Initiatives (QSI) segment to facilitate evaluation of its ongoing core operating businesses, including QUALCOMM CDMA Technologies (QCT), QUALCOMM Technology Licensing (QTL) and QUALCOMM Wireless & Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative view of the operating and liquidity performance of the Company because it excludes the effect of fluctuations in value of investments that are unrelated to the Company's operational performance.
The Company presents year-over-year comparisons of pro forma financial results as though the New Method of recording royalties had been in effect for prior periods to facilitate evaluation by management, investors and analysts of the results for these periods on a comparable basis to the Company's current guidance. The Company believes that this presentation is useful in evaluating performance on a consistent and comparable basis.
The Company presents pro forma results for fiscal 2005 excluding one-time tax benefits related to fiscal 2004 to provide management, as well as investors, a clearer understanding of its ongoing tax rate and after tax earnings. The Company believes that this presentation is useful in evaluating performance on a consistent and comparable basis.
The non-GAAP pro forma financial information presented herein should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, pro forma is not a term defined by GAAP and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies. Reconciliations between total QUALCOMM results and QUALCOMM pro forma results are presented herein.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology, including CDMA2000 1X, 1xEV-DO and WCDMA, both domestically and internationally; our dependence on major customers and licensees; fluctuations in the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the Company has or may pursue; our dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation, as well as the other risks detailed from time-to-time in the Company's SEC reports.
QUALCOMM®, MSM(TM), MediaFLO(TM) USA are trademarks and/or service marks of QUALCOMM Incorporated. CDMA2000® is a registered trademark of the Telecommunications Industry Association. All other trademarks are the property of their respective owners.
(1) The New Method of recording royalties is based solely on reports
received from licensees for royalty bearing sales of equipment in the
prior quarter. The Company adopted this New Method during the fourth
quarter of fiscal 2004 on a prospective basis. Under the Prior
Method of recording royalties, the Company recorded an estimate of
earned royalties in the quarter preceding its receipt of licensee
reports. Results under the New Method are used herein for
comparisons to fiscal 2004 to assist investors with evaluating
financial performance on a comparable basis.
QUALCOMM Contact:
Bill Davidson
Vice President, Investor Relations
1-(858) 658-4813 (ph) 1-(858) 651-9303 (fax)
e-mail: ir@qualcomm.com
QUALCOMM Incorporated
Reconciliation of Pro Forma Results to GAAP Results
for 2004 Periods for Comparative Purposes
(in millions, except per Three months ended Year ended
share data) September 26, September 26,
2004 2004
Prior Method of Recording
Royalties
Estimate of estimated
licensees for prior period $253 $151
Royalties reported by estimated
licensees for prior period 255 208
Prior period variance included
in reporting period 2 57
Other royalties reported in
reporting period 99 1,084
Estimate for estimated licensees
for current period -- --
Total QTL royalty revenues from
external licensees 101 1,141
Intercompany revenue 36 132
License revenue 14 59
Total QTL revenue using
Prior Method
Total QTL revenue including
prospective change to New
Method in Q4 '04 $151 $1,331
New Method of Recording Royalties
Total royalties reported by
external licensees (a) $354 $1,292
Intercompany revenue 36 132
License revenue 14 59
Total QTL revenue using New Method $404 $1,483
Difference between the methods $(253) $(151)
QTL earnings before tax using
Prior Method
QTL earnings before tax including
prospective change to New Method
in Q4'04 $111 $1,195
Less: Difference between the
royalty methods $(253) $(151)
QTL earnings before tax using
New Method $364 $1,346
Total QCOM revenues as reported
under GAAP $1,118 $4,880
Less: Difference between the
royalty methods (253) (151)
Total QCOM revenues using New Method 1,371 5,031
Total QCOM revenues and QCOM
pro forma revenues $1,371 $5,031
TOTAL QCOM earnings from
continuing operations before
taxes as reported under GAAP $431 $2,313
Less: earnings from continuing
operations before taxes attributed
to difference between the
royalty methods $(253) $(151)
Total QCOM earnings from continuing
operations before taxes using
New Method $684 $2,464
Less: QSI earnings from continuing
operations before taxes (c) $11 $(31)
QCOM pro forma earnings from
continuing operations before taxes (c) $673 $2,495
TOTAL QCOM net income as reported
under GAAP $393 $1,720
Less: Net income attributed to
difference between the royalty
methods (b) (154) (92)
Total QCOM net income using New Method 547 1,812
Less: QSI net income (loss) (c) 48 12
QCOM pro forma net income (c) $499 $1,800
QCOM diluted EPS as reported
under GAAP $0.23 $1.03
EPS attributed to difference
between the royalty methods $(0.09) $(0.06)
Total QCOM diluted EPS using
New Method $0.32 $1.08
EPS attributed to QSI (c) $0.03 $0.01
QCOM pro forma diluted EPS (c) $0.30 $1.07
Shares used for calculating
diluted EPS 1,692 1,675
(a) Represents royalty revenue that would have been reported during the
period if the "New Method" had been adopted retroactively.
Does not represent royalty revenue recognized under GAAP in these
periods.
(b) QTL's rounded effective tax rate was 39% in fiscal 2004.
(c) During the first quarter of 2005, the Company reorganized its
MediaFLO USA business into the QSI segment. The operating expenses
related to the MediaFLO(TM) USA business were included in reconciling
items through the end of fiscal 2004. Prior period segment
information has been adjusted to conform to the new segment
presentation.
QTL revenues as reported under GAAP and using the New Method are
presented to illustrate the difference between the Prior Method used for
royalties prior to the fourth quarter of fiscal 2004 and the New Method
implemented starting in the fourth quarter of fiscal 2004.
Sums may not equal totals due to rounding.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Seven Qualcomm Ratings in September 2006
8:22am Qualcomm upgraded to "Outperform" Goldman
7:11am QUALCOMM "overweight" Lehman Brothers
09/19/05 Qualcomm "outperform," target price raised Piper Jaffray
09/19/05 Qualcomm "buy," target price raised Deutsche Securities
09/12/05 Qualcomm "overweight," target price raised - update Prudential Financial
09/12/05 Qualcomm "overweight," target price raised Prudential Financial
09/08/05 Qualcomm "buy," target price raised Banc of America
http://www.newratings.com/companies/Wynn%20Resorts,%20Limited%20_US7475251036.html
Cheap Phones Lift Wireless Spirits
By Scott Moritz
Senior Writer
9/19/2005 1:24 PM EDT
Click here for more stories by Scott Moritz
http://www.thestreet.com/_yahoo/tech/scottmoritz/10243274.html?cm_ven=YAHOO&cm_cat=FREE&cm_i....
Worldwide cell phone sales growth is gaining speed, but not because of Nokia's (NOK:NYSE - commentary - research - Cramer's Take) latest 3G offering or Motorola's (MOT:NYSE - commentary - research - Cramer's Take) edgy designs.
No, the biggest growth is coming from the category with the smallest price tag.
The recent arrival of the $40 phone has suddenly opened the doors to developing markets like South Asia, Africa and Latin America, where household incomes are smaller and conventional telephone infrastructure is lacking.
With the average cell phone costing about $150, vast regions of the world have been left out of the mobile phone revolution. In fact, after a huge growth surge last year, handset sales volumes were expected to cool off a bit this year.
But then came the $40 phone, and now the sky is starting to look like the limit again.
In view of the broader developing market opportunity, JP Morgan Chase analyst Ehud Gelblum now expects 788 million units to be shipped, and he raised his 2005 handset growth estimate to 23%. Those numbers compare favorably even with last year's torrid pace -- 630 million units sold, a 20% increase over 2003.
In fact, given the small wireless presence and large populations in some countries, Gelblum says the $40 phone will help take the industry's unit shipments to more than 1 billion by the end of 2007.
"This is a ridiculous number, and the sad part is that if anything, I think I may be being too conservative, because I'm just scratching the surface in the emerging markets and I'm not even taking into account the huge replacement cycle in the U.S. or Europe," says Gelblum.
As the cell phone becomes more of an all-in-one gadget with features including cameras, video recorders, music libraries and email, the device's popularity has soared everywhere. The demand for new phones to replace slightly old phones, however, is limited in more mature markets such as Japan, South Korea, Europe and the U.S.
But now that Motorola and Nokia are gearing up factories to churn out $40 phones, the growth shifts to other parts of the globe.
"We finally have a lot of low end handsets," says Gelblum. "That's opening up brand new markets like India, where penetration is 7%, and opening up places like countries in Africa," he says adding that the wired infrastructure is so bad "they have to do wireless."
Overall, says Gelblum, "a strong handset market has to be good for Motorola." He rates Motorola and Qualcomm (QCOM:Nasdaq - commentary - research - Cramer's Take) buys.
Industry observers have a little concern over what sort of impact the $40 phone will have on the big handset makers. Fancy phones will need to stay popular to prevent a sharp drop in the closely watched average selling price figure. And at $40, it's not clear what margin the phone makers can expect to capture.
But for now, with so little growth anywhere else in tech, wireless has kept its special status on Wall Street.
Motorola shares were down 45 cents to $23.23 during midday trading Monday, off about 2% from their 52-week high last week.
Qualcomm To Benefit From Improving Wireless Trends
David Ng, 09.19.05, 2:50 PM ET
http://www.forbes.com/markets/2005/09/19/qualcomm-wcdma-wireless-0919markets12.html?partner=yahootix
Piper Jaffray reiterated an "outperform" rating on Qualcomm (nasdaq: QCOM - news - people ) and raised the target price to $51 from $47, citing improving wireless trends.
"We believe CDMA handset trends are improving, leading us to increase our estimates," Piper said.
The research firm raised the fiscal 2006 earnings-per-share estimate on Qualcomm to $1.48 from $1.45. It also raised the revenue estimate for the period to $6.71 billion from $6.64 billion.
Piper believes WCDMA trends will improve in the second half of 2005, with solid results coming from Japan.
The research firm also emphasized the strength of the Indian wireless market, as well as the North American CDMA market, based on data from Verizon Wireless.
In the 3G market, Vodafone (nyse: VOD - news - people ) recently announced plans to introduce 15 new 3G mobile handsets for the holiday season. "We believe increased competition from Vodafone is key to improving 3G trends in Europe," Piper said.
Verizon Wireless is a joint venture between Vodafone and Verizon Communications (nyse: VZ - news - people ).
Verizon Wireless teams with notebook makers
Published: September 19, 2005, 12:25 PM PDT
Last modified: September 19, 2005, 3:03 PM PDT
By Marguerite Reardon and Michael Singer
Staff Writer, CNET News.com
http://news.com.com/Verizon+Wireless+teams+with+notebook+makers/2100-1034_3-5873170.html?part=rss&am....
update Verizon Wireless is taking big steps to bring its wireless broadband technology to the masses.
On Monday, the company announced plans to embed its technology in notebook computers from three top manufacturers: Dell, Hewlett-Packard and Lenovo, which earlier this year bought IBM's ThinkPad division.
Verizon Wireless offers its BroadbandAccess service, which is based on a technology called Evolution-Data Optimized, or EV-DO, in 60 markets across the United States. The service allows customers to connect to the Internet wirelessly wherever a Verizon Wireless signal is available. Download speeds average between 400kbps and 700kbps, comparable to some DSL services.
Today, the service requires users to purchase a separate wireless card, which fits into a laptop, for about $100. Starting in the first quarter of 2006, Dell will offer customers the option of embedding Verizon's EV-DO functionality into its Latitude series of laptops. Dell already gives customers two other choices to connect to the Internet wirelessly: Wi-Fi technology and Cingular's EDGE technology, which provides download speeds between 100kbps and 135kbps.
On Monday, HP also announced it will be working with Verizon to offer an EV-DO-ready laptop. The new laptops, using chipsets from Qualcomm, will be available in early 2006. Lenovo said Verizon EV-DO technology will be embedded in its Z series notebooks available in October.
Verizon Wireless currently has the most extensive high-speed broadband footprint of any cellular provider. But it won't be long before competitors, such as Sprint Nextel and Cingular, catch up. Lenovo has already begun evaluating wireless broadband technology from other service providers, but it is not ready to announce specific plans to integrate the technology into its products, said Mike Callahan, worldwide ThinkPad product manager for Lenovo.
In the meantime, Verizon is focused on signing up as many customers to its EV-DO service as it can. As part of this push, last month it announced it was lowering prices to $60 from the previous price of $80 to attract new customers.
The deal with laptop makers is another important step for Verizon as it tries to push its EV-DO service into the mainstream. Making it easier for users to access the service is a key factor in increasing adoption.
The strategy worked for Wi-Fi, another wireless technology for connecting to the Internet. Thanks to Intel, which makes Wi-Fi chipsets, the technology is embedded in most laptops sold today.
"Once Wi-Fi technology was embedded into notebooks, wireless LANs really started to take off," said Lenovo's Callahan. "We see the same thing happening for wireless WAN. The people who really want mobility while they are away from the corporate LAN or a Wi-Fi hot spot will really find this technology useful."
Previous Next Wi-Fi is potentially the biggest threat to Verizon's EV-DO service. It's already available in many airports, hotels and coffee shops throughout the country. And in many cases it's offered for free. Cities such as San Francisco and Philadelphia are even planning to blanket their cities with the technology to provide free Internet service.
But there is a downside. Wi-Fi's transmission distance is relatively short, often making it difficult for business travelers to count on a strong signal or any signal at all when they're on the road. The advantage to EV-DO is that its signals can travel greater distances, providing more widespread and uninterrupted Internet access for customers. This distinction could make it more attractive to corporate road warriors.
Despite the promise of wider coverage, Verizon customers may not see the same speeds with their EV-DO cards and embedded chips as their Wi-Fi counterparts.
While 802.11 consistently hits speeds of 11mbps, Verizon's promise of as much as 700kbps for its BroadbandAccess service is actually more comparable to AOL dial-up, Sam Bhavnani, an analyst with Current Analysis, said.
"I could see this being used more by business users than casual users," Bhavnani said. "I know when I travel through several airports, the cost to hook up to all of these separate Wi-Fi providers costs me $6, $7 a pop. By the time I get home, I could be spending close to $30, so the key for Verizon is price.
However, Bhavnani also noted that Verizon is currently servicing about 39 out of the top 50 cities in the United States.
"You could easily find faster Wi-Fi connections in any of those cities," he said.
Qualcomm Shares May Be At 'Attractive Entry Point'
Maya Roney, 09.19.05, 10:00 AM ET
http://www.forbes.com/markets/2005/09/19/qualcomm-vodafone-3g-0919markets02.html?partner=yahootix
Credit Suisse First Boston maintained an "outperform" rating and $50 price target on Qualcomm (nasdaq: QCOM - news - people ) following Vodafone (nyse: VOD - news - people )'s launch of an extensive range of 3G wireless handsets.
Vodafone announced 10 new 3G handsets with improvements in size, talk-time and weight. New models include the Motorola (nyse: MOT - news - people ) E770V, Motorola RAZR V3, Nokia (nyse: NOK - news - people ) 6280 and the Samsung ZV10.
CSFB says Vodafone's strategy supports its expectation for 3G adoption in Europe to ramp by year-end, making now an "attractive entry point" for buyers of Qualcomm. With Qualcomm trading at 28 times the calendar 2006 earnings-per-share estimate, the valuation "is compelling, particularly relative to its historical trading range."
The firm recently increased its calendar 2006 and 2007 WCDMA (wideband code division multiple access) handset unit estimates for Qualcomm to 97 million and 164 million units, respectively, up from 96 million and 161 million units.
"We expect WCDMA adoption to accelerate in 2006 and continue to expect Qualcomm to achieve revenue and earnings-per-share growth substantially in excess of the global handset market," said CSFB.
Vodafone sees 3G demand pickup
Sarin still after acquisitions; no comments on cash return
By Aude Lagorce, MarketWatch
Last Update: 8:25 AM ET Sept. 19, 2005
http://www.marketwatch.com/news/story.asp?guid=%7B4EAECE5F-6D7E-4DCF-B8F7-FE3447008935%7D&siteid....
LONDON (MarketWatch) -- U.K.-based mobile phone giant Vodafone Group PLC on Monday said adoption of third-generation devices were gaining momentum, but Chief Executive Arun Sarin's absence of comments on cash returns at the company's analyst day pulled on the company's share price.
Vodafone (VOD: news, chart, profile) (UK:VOD: news, chart, profile) said it had sold 4.35 million 3G devices, comprising 3.95 million consumer devices and 400,000 Vodafone Mobile Connect 3G/GPRS data cards, at the end of August. The number represents 2% to 3% of the carrier's customer base.
Vodafone expects 10 million customers to be using 3G services by the end of the fiscal year, which runs to April.
"The rate of take up is accelerating. The 3G average revenue per user, a key measure of profitability, is 24% higher than for the 2.5G user," Chief Marketing Officer Peter Bramford said in a presentation.
Vodafone shares were down 1% in afternoon London trading.
One analyst said the 3G figure may be a good omen for sales in December.
"It's a good straw in the wind for Christmas," said Julian Hewett, a telecommunications analyst for Ovum, a telecommunications consultant.
"But 3G adoption depends less on Vodafone now than on what users are doing with the handsets, if they're still just using voice, it's going to be an issue. The problem with 3G remains that there's no killer application," he said.
Although 3G handsets have been available for years, adoption has been slow and the devices have struggled to find their clientele.
Improved networks, more handset variety as well as improved screen and battery life suggest that the devices might be taking off for good this holiday season.
Vodafone said it feels confident that a new range of 3G handsets for Christmas will boost sales in the category, also noting that 3G prices have come down 30% from 2004.
Vodafone also indicated that it's already looking beyond its current 3G offering by announcing the deployment of HSDPA, a faster version of 3G communication services, in the first half of 2006.
Outlook confirmed for fiscal 2006
At the conference, Vodafone also reiterated its guidance for fiscal 2006, saying it expects to deliver organic mobile revenue growth in the 6% to 9% range. Mobile EBITDA margin is expected to be in the range of flat to 1 percentage point lower than that achieved in the 2005 financial year, after taking into account the effect of declines in interconnect rates and increased competition.
On the topic of shareholder returns, however, CEO Sarin stayed mum, saying financial details would be discussed in November.
This may come as a disappointment to the market, which was hoping for some cash returns.
Ahead of the conference, Deutsche Bank analysts had told clients to keep an eye out for announcements regarding the sale of a non-core asset sale like Sweden or for a hike in cash return strategy.
Sarin was less taciturn on the topic of acquisitions. He reiterated his interest in French operator SFR, which is mostly held by Vivendi Universal (V: news, chart, profile) , and said he continues to examine opportunities in Eastern and Central Europe, with a particular focus on Poland.
"We continue to look for opportunities in Asia. There are clearly one or two investments that we have, where we would like to take our investments up (increase our holdings) -- countries such as Poland or in SFR (in France)," he said.
Vodafone has long been trying to increase its near 20% take in Poland's Polkomtel as well as its 44% stake in SFR.
Aude Lagorce is a reporter for MarketWatch in London.
4 millions people dial-up Voda's 3G service
Mass market on its way
By Tim Richardson
Published Monday 19th September 2005 11:22 GMT
http://www.theregister.co.uk/2005/09/19/vodafone_3g/
More than four million people worldwide are tuned into Vodafone's 3G phone service, the giant cellco announced today.
Ten months after launching its next generation service, Vodafone reported today that 3G is "gaining increasing traction in the market".
As of the end of August it had some 4.35m 3G customer in some 15 markets, including around 400,000 Vodafone Mobile Connect 3G/GPRS data cards in circulation.
When Vodafone launched its 3G service last November it predicted that 10m people would be using its 3G services by March 2006. The company is relying on the annual Christmas shopathon to help boost numbers. Last week it unveiled a new range of handsets intended to take 3G services to the mass market.
The cellco says the phones will be the "best yet" with handsets smaller and lighter, with longer battery life, nifty new designs and "better value prices". A number of the phone will be geared to the entry-level market.
Peter Bamford. Vodafone's head of marketing, said : "Vodafone will be offering a broader range of phones at better value prices this Christmas. A significant proportion of the range is targeted at mid to entry level price points, encouraging the mass market adoption of Vodafone live! with 3G.
"We are confident that this is going to be a 3G Christmas," he said.
Vodafone also announced today that it intends to start user tests and trials of a faster 3G service in the first half of next year.
A full commercial launch of the HSDPA (High-Speed Downlink Packet Access) service has been pencilled in for the middle of 2006 and will see download speeds boosted by around 4 times, the company said in a statement. ®
The 10 Highest-Rated Stocks Investors Love to Own
The technology sector is emerging as the market's leader -- at least when it comes to widely held stocks. More...
http://biz.yahoo.com/special/own919_05.html
1. Google (GOOG) - IBD Stock Checkup
In less than a year, the Web search engine has become one of the biggest companies in terms of capitalization. More.
2. Genentech (DNA) - IBD Stock Checkup
Its work against cancer, heart attacks and other serious ailments has made it a popular stock. More.
3. Amgen (AMGN) - IBD Stock Checkup
The biotech company is also working on cancer treatments. It's developing a drug for osteoporosis, a condition 34 million Americans are at risk of acquiring. More.
4. ConocoPhillips (COP) - IBD Stock Checkup
One of the largest oil companies in the world, with operations in almost every continent. More.
5. UnitedHealth Group (UNH) - IBD Stock Checkup
The nation's No. 2 HMO is getting bigger by acquiring PacifiCare Health Systems. More.
6. Texas Instruments (TXN) - IBD Stock Checkup
Its calculators made it a household name. But the firm's products extend to chips for PCs, phones, cars, high-definition TVs and other products. More.
7. Exxon Mobil (XOM) - IBD Stock Checkup
The oil giant is also part of the energy sector rally brought on by soaring crude prices. It's also one of the leading energy researchers, employing 20,000 scientists and engineers. More.
8. Motorola (MOT) - IBD Stock Checkup
The company has given investors many reasons to remember its name, from early car radios to two-way radios and cell phones. More.
9. Medtronic (MDT) - IBD Stock Checkup
Its products include an implanted device to help Parkinson's patients, another for control of pain for cancer victims, and an insulin-delivery pump for diabetics. More.
10. Qualcomm (QCOM) - IBD Stock Checkup
The stock soared and crashed dramatically in the tech bubble. The past two years, it has made sober gains as the company remains a key player in the wireless industry
Upgraded @Piper with $51 Target
Courtesy of herf2aces from Yahoo Qcom Board:
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4686818&tid=qcom&sid=468...
by: herf2aces (M/Lincoln, Ca. (Sacramento, Ca) 09/19/05 08:53 am
Msg: 573747 of 573749
08:39 QCOM Qualcomm: Improving Trends; Raising Price Target - Piper (43.32 )
Based on its global channel checks, Piper believes CDMA handset trends are improving, leading the firm to increase its estimates. The firm believes QUALCOMM deserves to trade at 30x its FY07 (was 30x FY06 plus $3.40 in cash), which leads to its $51 price target. The firm believes investors will increasingly focus on FY07 estimates, leading the firm to adjust its valuation multiple. Piper believes this multiple is reasonable given improving visibility regarding 3G CDMA subscriber growth and QUALCOMM's strong patent portfolio and high-margin QTL business. With more than 1.4B GSM subscribers on a migration path to CDMA-based technologies over the next decade, the firm believes QUALCOMM should post strong long-term earnings growth relative to our coverage universe.
QUALCOMM and Nordisk Mobiltelefon (NMT) Announce Agreement to Offer BREW(R) Services to Wireless Subscribers in Sweden and Norway
Monday September 19, 7:30 am ET
- Agreement Marks Second BREW Operator in Europe; Enables Downloading of High Performance Applications, Content and User Interfaces to NMT Customers -
http://biz.yahoo.com/prnews/050919/lam063.html?.v=22
SAN DIEGO, Sept. 19 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced an agreement with Nordisk Mobiltelefon AS, a CDMA2000® 1xEV-DO wireless service operator focusing on the rural Nordic market for voice and data services, to deploy BREW products and services over its CDMA450 network in Sweden and Norway. The rollout of BREW wireless applications in both countries will enable NMT subscribers to download the most up-to-the-minute, compelling mobile content available in various application categories that target both enterprise and consumer users.
ADVERTISEMENT
"This announcement builds on the momentum that the BREW solution is experiencing in Europe and marks a significant step for the region in having the most optimized wireless data offerings available," said Bob Briggs, vice president of global business relations and operations for QUALCOMM Internet Services. "QUALCOMM looks forward to supporting NMT as they are committed to delivering advanced wireless services and truly recognize the inherent value and technical capabilities that the BREW solution can provide its wireless subscribers."
"NMT is committed to providing advanced 3G technology solutions with the most up-to-date mobile applications and content available to its customers. Our CDMA450 network combined with the BREW solution provides an excellent platform for the development and distribution of new services to our professional and consumer users," said Johan Lodenius, chief of end-user devices and applications, Nordisk Mobiltelefon. "It is very important for us that any local developer or enterprise can provide specialized application and content solutions in an open environment. Our end-users will then have access to a large library of BREW applications that have been created by developers worldwide."
QUALCOMM's BREW solution is designed to meet the distinct and varied needs of wireless operators, handset manufacturers, publishers, developers and end users around the world. BREW products and services include: an open, extensible client platform that supports robust systems and application software including personalized and branded user interfaces for mass market devices; a J2EE(TM)-based, modular delivery system that enables the distribution of content, applications and user interfaces to wireless devices across all air interfaces; a dedicated professional services team that supports the integration of customized implementations; and the wireless industry's first global marketplace to support the monetization of applications and services developed in all programming languages. The BREW solution can make the wireless visions of innovative companies a reality.
Nordisk Mobiltelefon AS (NMT) is a Nordic region wireless service operator, currently holding licenses in the 450MHz band in Norway and Sweden. NMT is providing voice and data services using 1xEV-DO technology and is focused on professional and consumer segments in the rural regions.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the extent and speed to which CDMA and the BREW solution are adopted and deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 26, 2004, and most recent Form 10-Q.
QUALCOMM and BREW are registered trademarks of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
QUALCOMM Contacts:
Bella Alabanza, QUALCOMM Internet Services
Phone: 1-858-658-4860
Email: bellaa@qualcomm.com
or
Jeremy James, Corporate Communications
Phone: 1-858-845-7333
Email: corpcomm@qualcomm.com
or
Bill Davidson, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
Nordisk Mobiltelefon Contact
Johan Lodenius
Phone: +46-70-295-5955
Email: johan.lodenius@nordiskmobiltelefon.se
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Make it cell city: New Orleans: Go wireless
By Eric Convey/ Perspective
Sunday, September 18, 2005
http://business.bostonherald.com/technologyNews/view.bg?articleid=103083&format=&page=1
For a city that all but dared modernity to exert itself - resting comfortably as it did with its 18th century levee system and 19th century-style political corruption - New Orleans faces an extraordinary challenge.
And it also has an extraordinary opportunity: A chance to become the most technologically advanced big city in the United States.
There's nothing like rebuilding from scratch with a blank check from the federal government.
So here are a few modest proposals for making the best of the devastating situation that Hurricane Katrina left behind.
Decide very quickly what mobile telephone standard makes the best sense for the region - GSM (the world's most widely used mobile standard) or CDMA (a different technology that spreads data widely across bandwidth).
Then go full-speed-ahead to build it out. Don't leave the decision to the mobile phone companies; they're wedded to particular technologies. Instead, convene experts to pick the best one and put government support behind it.
Then hand out mobile phones to economically challenged New Orleans residents returning to the area. Stringing phone wires should not be a priority.
(Vexing dilemma: Verizon Wireless has the best network. Cingular and others use a system that's more flexible and more popular in Europe. One way to make tourists happy is to make their tri-mode mobile phones work in the city they're visiting.)
Very, very quickly build a high-speed wireless data network such as Verizon Wireless' superb BroadBand Access.
The Gulf Coast terrain is ideal for wireless data.
Of course, folks will need computers, too. Dell's huge Texas operations are awfully close to New Orleans.
With the tens of billions of dollars it's throwing around, the federal government certainly could afford to help a bunch of people who are dealing with the biggest challenges of their lives gain access to the information to help them do it.
To the extent power stations are rebuilt, distribute them broadly.
A system based on lots of little stations is far safer from natural disaster or terrorists. Emerging technologies make building such a system far more feasible than it used to be.
Encourage the construction of solid, multi-unit housing with ready access to first-rate public transportation. Light rail might be an excellent option.
Help the local economy with federal funding for certain teachers - specifically, math and science teachers. Lots of them.
There's nothing like building a technology-fluent populace to create a long-term fix for an economically troubled region.
Of course, politicians will have to jump on board. But it should be a no-brainer.
Why should Republicans advance this?
Not only because it's the right thing to do, but also because there's a powerful message in introducing high technology and cutting-edge infrastructure to a region that is hardly on the forefront of mathematics and science education in the United States.
Put another way, Cambridge and Palo Alto, Calif., will look out for their own technology needs just fine. But there's something especially elegant about putting technology in the hands of people who might not otherwise benefit from it.
Democrats should jump on board because there's nothing more egalitarian than spreading around the tools of economic progress as broadly as possible.
And technology geeks everywhere should rejoice at the chance of visiting a beautiful, historic city that also will be an economic and technological showcase.
Think of it as Macworld on the Mississippi.
Sprint launches Windows Mobile 5.0 Pocket PC phone
Sep. 16, 2005
http://www.windowsfordevices.com/news/NS3994479131.html
Sprint has announced what it claims is the first Pocket PC phone in the US to run Microsoft's new Windows Mobile 5.0 software platform. The Sprint PPC-6700 is a CDMA handset with a slide-out QWERTY keyboard plus a 1.3 Mpixel camera and EV-DO, WiFi, and Bluetooth capabilities.
The PPC-6700 is rumored to be manufactured by Taiwanese ODM (original device manufacturer) HTC, based on that company's Apache reference platform. It's powered by a 416 MHz Intel XScale PXA270 embedded processor and reportedly comes equipped with 64 MB of RAM and 128 MB of Flash memory. It features a unique, sliding QWERTY keyboard that opens from the side and automatically changes orientation from portrait to landscape viewing mode. The device also boasts a 1.3 Mpixel camera with built-in flash, digital zoom, and camcorder functionality.
The PPC-6700 supports the Evolution Data Optimized (EV-DO) high-speed wireless data protocol with claimed average download speeds of 400 to 700 Kbps and peak rates up to 2.0 Mbps. In areas that don't yet have EV-DO service, the handset falls back to 1XRTT throughput rates. WiFi and Bluetooth wireless are also built in.
The PPC-6700 is one of the first Pocket PC phones to feature Windows Mobile 5.0. Its application Software includes updated version of Office applications including Outlook Mobile and the new PowerPoint Mobile. Sprint says the PPC-6700 also supports Microsoft Exchange ActiveSync for over-the-air synchronization of email and calendar information with Microsoft Exchange Server 2003.
"We believe the PPC-6700 really is the next-generation mobile device," said Philip Christopher, president of UTStarcom Personal Communications. "Built with business applications in mind, the sliding keyboard and advanced data capabilities are just two of the many features, which when paired with Sprint's advanced wireless service, are designed to enable professionals to virtually carry office capabilities in their pocket."
Availability
The PPC-6700, marketed by UT Starcom Personal Communications, will be available next week through Sprint's business and sales channels for $629.99 "before discounts and promotions," the company says. The device will be offered nationwide in Sprint Stores and online later this year.
Cramer on Qualcomm
http://www.thestreet.com/_yahoo/funds/madmoneymailbag/10242905.html?cm_ven=YAHOO&cm_cat=FREE&...
Excerpt from above:
If you could add either Qualcomm (QCOM:Nasdaq - commentary - research - Cramer's Take) or Ericsson (ERICY:Nasdaq ADR - commentary - research - Cramer's Take) to your portfolio, which would you choose?
-- Tony from California
James J. Cramer: Call me biased, but I'd choose Qualcomm, which I already own for my charitable trust, ActionAlertsPLUS.
The company may not directly manufacture mobile phones anymore, but its CDMA technology is behind the white-hot 3G technology that is driving the latest round of handset upgrades.
Tech investor plugs Qualcomm, Oracle
September 16, 2005 05:02 PM ET
http://moneycentral.msn.com/content/CNBCTV/Articles/StockPicks/P129864.asp
The technology sector remains a good way to play the resilience of the U.S. economy, says Roger McNamee.
Economists are beginning to realize that Hurricane Katrina packed a bigger economic wallop than was feared. The pain inflicted by the storm is real, but the response is bound to have beneficial effects, said Roger McNamee.
"When the country gets focused on doing something very positive, that's always good news," McNamee said Friday on CNBC's "Power Lunch." "Katrina is going to help us shift national priorities in a much more constructive way."
McNamee is a long-time technology investor and co-founder of a private investment fund geared to new-media called Elevation Partners.
McNamee remains bullish on two trends in the technology sector -- mobility and enterprise software. He recommended stocks in each sector, which his company owns.
Quick Analysis
QUALCOMM, Inc.
• The company is a leading developer of wireless-chip technology. It pioneered CDMA (code division multiple access) technology used in cell phones and other wireless communications equipment.
• As the CDMA patent holder, Qualcomm derives royalties from licensing its technology to cell phone makers. Technology licensing accounts for one-third of company sales.
• Qualcomm is well positioned in the ongoing shift to newer 3G or third-generation cell-phone technologies that can transmit data at higher speeds, McNamee said.
• Prudential Equity Group reiterated its "overweight" rating on the stock and $48 price target on Aug. 29, citing a decision by Verizon Wireless to lower monthly fees for high-speed services. Prudential said other U.S. and European carriers would likely make similar moves, driving adoption of high-speed services and benefiting Qualcomm.
• Qualcomm insiders have been heavy sellers of company shares this summer. Insiders have executed more than 50 sales of Qualcomm stock in the past three months.
• The average brokerage recommendation on Qualcomm is moderate buy, according to Zacks.
• Qualcomm on Sept. 16 was rated 9 out of 10 on StockScouter.
RESEARCH IN MOTION LIMITED
• The Canadian company is best known for its BlackBerry wireless e-mail device, which accounted for about two-third of Research in Motion's revenue. About two-thirds of Blackberry sales are in the United States.
• In addition to making the Blackberry, Research in Motion provides an e-mail service to users of the mobile device. The company in June said there were 3.1 million BlackBerry users, a gain of nearly 600,000 in a three-month period.
• Nokia, the world's biggest maker of mobile phones, took aim at the Blackberry earlier this month with the launch of a service for business customers that will allow them to access their corporate-e-mail accounts from Nokia cell phones.
• Nokia's announcement was the latest by both prominent and upstart companies eyeing a market pioneered and long-dominated by BlackBerry, The Associated Press reported. With corporations paying monthly fees of $45 and more per employee, the mobile e-mail market stands as one of the more lucrative untapped opportunities in the wireless industry.
• ThinkEquity Partners, a San Francisco investment firm specializing in technology companies, put a "sell" rating on Research in Motion on Aug. 22. "Don't trade on rumors; RIMM's problem is the competition," analyst Pablo Perez-Fernandez wrote. "Competition from companies like Good Technology, Visto, Seven and Intellisync is likely to make it increasingly difficult for RIMM to maintain the margin profile it currently enjoys."
• The average brokerage recommendation on Research in Motion is hold, according to Zacks.
• Research in Motion on Sept. 16 was rated 6 out of 10 on StockScouter.
Oracle Corporation
• It's the world's biggest provider of enterprise software. Its products fall into two broad categories: database technology software and business applications software.
• The company has made a string of acquisitions in a bid for supremacy in the global market for customer resource management (CRM) software. It acquired rival PeopleSoft in January and earlier this month said it would buy Siebel Systems for $5.8 billion in cash and stock.
• Wall Street's initial reaction to the Siebel announcement was generally positive. "The company is solidifying its role as the industry consolidator," said Merrill Lynch analyst Kash Rangan, according to The Wall Street Journal. "It is rolling up competitors that are losing revenues and market share, but otherwise have strong customer bases, best-of-breed products, and vertical expertise. By undertaking its second major acquisition this year, Oracle demonstrates that it is has weathered the tech downturn," Rangan said.
• The average brokerage recommendation on Oracle is moderate buy, according to Zacks.
• Oracle on Sept. 16 was rated 8 out of 10 on StockScouter.
Vodafone still leads the way in the UMTS market with ten new mobile phones
http://www.noticias.info/asp/aspComunicados.asp?nid=99443&src=0
/noticias.info/ After a hot UMTS phone summer, Vodafone has announced a fantastic range of new UMTS mobile phones for autumn and winter 2005 – with the focus on diversity and exclusiveness. By the end of the year, the range of UMTS phones will include ten high-quality models from various manufacturers and in different price categories. Six of the models are only available from Vodafone: the Sharp 903, Toshiba 803, Samsung ZV10, Samsung ZV30, Motorola E770V and the Sagem my V-85 will be in the shops in time for Christmas trading.
The UMTS promotion over the next few months again underlines Vodafone's leadership in the market for third-generation mobile communication services and terminal devices. Vodafone offers a wide range of UMTS products, from the UMTS starter model and 'UMTS Jukebox' to high-tech phones. There are also professional models, such as the camphone with 3.2 megapixel camera, a UMTS PDA, and a broad assortment of all-round devices in various designs and price categories. Above all, the exclusive UMTS Vodafone live! phones are perfect for Vodafone's UMTS-based services, such as mobile TV, music downloads or video telephony*. All new models have an integrated MP3 player. What's more, the UMTS multimedia services have not only been available to contract customers, but also prepaid customers with a UMTS phone, since the new UMTS Call Ya phones and the 'Vodafone Happy Live! UMTS for Call Ya' tariff were introduced on 8 September.
Sharp 903 Camphone or phonecam? This is a question that can quite rightly be asked in connection with the new Sharp 903, which has been available since August 2005. This high-tech model is the first UMTS phone with digital camera that can deliver photos with a resolution of 2,048 x 1,536 pixels. The 2x analogue zoom lens enables flexible settings and the camera's autofocus function produces razor-sharp images. The Sharp 903 also satisfies the requirements of even the most discerning customers of a premium mobile phone.
Toshiba 803 There's a reason why this model is nicknamed the 'UMTS Jukebox'. The Toshiba 803 enables full access to Vodafone Music Downloads. Reflecting this, the phone's simple clamshell design has special integrated play buttons that make it look like an MP3 player. Further highlights of the Toshiba 803: 2.3 megapixel camera with 20 x digital zoom, display with 262,144 colours, bluetooth and Mini-SD memory cards.
Samsung ZV10 This compact Samsung UMTS phone is an ideal travelling companion. The Samsung ZV10 is a triband phone that can be used in many regions of the world. It also has an e-mail client and high memory capacity. There is 50 MB of dynamic internal memory offering plenty of space for the many Java games on the Vodafone live! portal.
Samsung ZV30 The Samsung ZV30 is an elegantly-designed, compact UMTS phone which is also pleasantly lightweight at 110 grams. It is ideal for the use of special UMTS services such as mobile TV or video telephony. The triband phone also has a display with 262,144 TFT colours and a resolution of 176 x 220 pixels. The Samsung ZV30 also integrates a convincing 1.3 megapixel camera, bluetooth and a large 40 MB internal memory which can be extended to up to 256 MB with Trans-Flash cards.
Motorola E770V The Motorola E77V is an attractive all-round mobile phone for people who want to try out UMTS. It provides access to mobile TV, video telephony and Vodafone Music Downloads. After downloading the songs can be played back on the phone's integrated MP3 player. It also features a digital camera and a bluetooth interface for use with a wireless headset.
Sagem my V-85 Another ideal UMTS starter model is the Sagem my V-85. The mobile phone has a large display with 262,144 colours for mobile videotelephony and TV fun. Further top features are the integrated 1.3 megapixel digital camera and diverse options for synchronisation via infrared interface, USB or bluetooth.
More UMTS phones to put under the Christmas tree The following models - in addition to the exclusive UMTS phones - will be available from the Vodafone shops this autumn and winter: Motorola V3x, Nokia 6280, Nokia N70, Vodafone VPA IV.
Christmas shoppers will find a selection of some 20 different UMTS phones at the Vodafone shops: Motorola V980, Motorola E1000, Motorola E770V, Motorola V3x, Motorola A1000, Nokia 6630, Nokia 6680, Nokia N70, Sagem my V-85, Samsung Z500, Samsung Z140V, Samsung ZV10, Samsung ZV30, Sharp 903, Sharp 902, Sony Ericsson V800, Sony Ericsson V600i, Toshiba 803, Vodafone VPA IV.
The prepaid range includes the following models: Motorola C980, Motorola V980, Samsung Z140V, Sony Ericsson V600i.
Vodafone to offer mass market 3G mobile phones
Nancy Gohring
Friday, 16 September 2005
http://www.infoworld.nl/idgns/bericht.phtml?id=00256F6C005C22FC8025707E0032968D
Vodafone Group PLC will offer 15 new 3G (third generation) mobile phone handsets for the end-of-year shopping season. While the company had a similar "3G Christmas" campaign last year, analysts expect this one to be more successful.
Late last year, Vodafone rolled out some expensive and large phones that weren't particularly attractive across the market, said Ben Wood, a research vice president at Gartner Inc. "It was more about placating the investors," he said.
Mobile operators have come under pressure to offer a return on the investments they made in the licenses and network gear required to provide 3G services.
This year, however, marks a change for Vodafone.
"Vodafone have got serious about 3G now," Wood said. "They're using their size and purchasing power to put together the best portfolio of 3G phones and services."
Six of the new phones to be offered by Vodafone will be geared toward the entry level mass market. Ten of the 15 will be exclusive to Vodafone.
Most of the phones will be available across all of the Vodafone markets, though it will be up to the individual markets to decide on which devices they'll sell, a Vodafone spokesman said. Vodafone operates 3G services in the U.K., Ireland, Italy, Sweden and Germany, among other countries.
The new additions to Vodafone's handset line up may help it better compete in the 3G space, particularly with Hutchison 3G UK Ltd. Hutchison operates the network branded as 3 in the U.K., Ireland and other countries, and offers a low-price 3G service with a wide portfolio of services. As a result, the operator has become synonymous with 3G.
"The other network operators are starting to get their story together so they can take the fight back to Hutchison and try to take the mindshare on 3G back from them," Wood said. "The gloves are off. We're going to see aggressive competition for 3G."
Verizon, Vodafone intro wireless broadband service for international travelers
- Edited by Gary Thayer
http://www.mobilevillage.com/news/2005.09.16/verizon-voda.htm
Sept. 15, 2005 -- (MobileVillage) -- Verizon Wireless and Vodafone today announced GlobalAccess, a new service targeted at business travelers that provides a secure Internet connection in more than 60 cities in the United States, as well as in Canada and 50 countries in Europe, Asia, Australia and Africa.
Running on Verizon Wireless' Evolution-Data Optimized (EV-DO) network, BroadbandAccess allows customers to use their laptops to tap into applications and tasks with typical user download speeds of 400-700 kilobits per second (kbps), according to the carrier.
While operating outside of the United States, GlobalAccess runs on Vodafone's 3G network with data rates of up to 384 kbps using the Vodafone Mobile Connect 3G/GPRS where available, acting as an extension of Verizon Wireless' BroadbandAccess service. Through Vodafone's networks and its roaming agreements, GlobalAccess can be used in up to 50 countries.
As with Verizon Wireless' BroadbandAccess service for business customers, GlobalAccess is a wide-area wireless data service. That is, customers are not limited to the 300-foot range of Wi-Fi; instead, they can work when and where they need to and experience the freedom of mobility.
The service requires customers to use two cards -- one for accessing Verizon Wireless' EV-DO BroadbandAccess service and the other for Vodafone Mobile Connect 3G/GPRS. The cards include software that detects which data card has been inserted in the laptop and launches the dashboard client for connection to the appropriate service.
Verizon Wireless GlobalAccess customers can get unlimited use in the United States and Canada, and up to 100 MB of usage in France, Germany, Italy, Spain, Sweden, the United Kingdom and in other Western European (Tier 1; see list below) countries for US $130 monthly access with a one- or two-year customer agreement. Other countries (Tier 2), such as Australia, Brazil, China, Israel, Hong Kong, Russia, Singapore, South Africa, Taiwan and Thailand are billed at $0.03 per KB.
For the less frequent international business traveler, Verizon Wireless also offers a pay-per-use plan for customers on existing unlimited BroadbandAccess or NationalAccess plans. For international wireless data, prices vary: for example, $0.002 per KB in Canada, $0.02 per KB in Tier 1 countries and $0.03 per KB in Tier 2 countries.
The Verizon Wireless V620 and U630 cards cost US $280 with a two-year customer agreement or $380 with a one-year customer agreement. Existing BroadbandAccess customers can also purchase the Verizon Wireless U630 Global PC Card separately and use their existing BroadbandAccess PC Card they already own for GlobalAccess. The Verizon Wireless U630 Global PC Card is available for $180 with a two-year customer agreement or $230 with a one-year customer agreement.
Tier 1 Countries
Belgium Greece Italy Spain
France Hungary Netherlands Sweden
Germany Ireland Portugal Switzerland United Kingdom
Tier 2 Countries
Australia Egypt Malaysia Slovakia
Austria Estonia Malta Slovenia
Bahrain Finland New Zealand South Africa
Bosnia/Herzegovina Hong Kong Norway Taiwan
Brazil Indonesia Philippines Thailand
Bulgaria Israel Poland Turkey
China Kuwait Romania Ukraine
Croatia Latvia Russia Venezuela
Czech Republic Lithuania Serbia/Montenegro
Denmark Luxembourg Singapore
Nortel Unveils Fixed, Mobile WiMAX Strategy
September 15, 2005
http://www.wirelessiq.info/content/newsfeed/4546.html
Nortel today announced plans to offer fixed and mobile WiMAX products based on the latest industry standards, and to work with WiMAX leaders Intel and Airspan Networks in bringing these products to market.
These efforts are expected to complement work already underway with the LG-Nortel joint venture.
Nortel's WiMAX products will be designed to allow wireless and wireline carriers, cable providers, media companies and other ISPs to deliver broadband connectivity to consumer and enterprise users by leveraging existing networks and 'last mile' wireless links. They will also complement and extend the reach of existing 3G cellular networks.
WiMAX is a long-range wireless broadband access system that can deliver large amounts of bandwidth very economically. It will give businesses and consumers uninterrupted access to a rich variety of high bandwidth applications like networked gaming, streamed digital music, TV, videoconferencing, and other real-time services.
Fixed WiMAX (IEEE 802.16-2004) is anticipated to operate in the 3.5GHz and 5.8GHz bands of spectrum and to deliver end-user data rates greater than 1 Mbps, comparable to many North American cable broadband and DSL connections. Mobile WiMAX (IEEE 802.16e) will initially operate in the 2.5GHz band and provide even higher speeds and the added convenience of 'anytime, anywhere' access.
"We will be a technology leader in WiMAX, just as we have been with UMTS/HSDPA, CDMA, VoIP and wireless mesh," said Mark Whitton, vice president and general manager, WiMAX and Wireless Mesh Networks, Nortel. "Nortel is an expert in all the foundation technologies for both wireless and broadband, something we believe no other company can match."
"Nortel's WiMAX solutions will be based on our years of experience building practical, profitable, leading-edge networks," Whitton said. "We're taking the best of what we've learned from our successful cellular, Internet, and voice businesses and combining it to create industry-advancing solutions designed to meet the growing demand for wireless broadband."
"There is no denying the attraction of having automated broadband connectivity whenever and wherever you power up your laptop," said Phil Marshall, vice president, Wireless Mobile Technologies, Yankee Group. "Promising new technologies often fail, however, for lack of a viable business model or a weak value chain. Support of major networking companies like Nortel is a strong and positive sign that WiMAX intends to compete vigorously for its place in the industry."
Nortel is collaborating with Intel to promote deployment of wireless broadband based on WiMAX.
"As WiMAX-Certified products enter the market, cities and regions around the globe are planning for and deploying WiMAX networks," said Scott Richardson, general manager of Intel's Broadband Wireless Division. "We are very pleased to be working with market innovators like Nortel to develop and deploy end-to-end mobile broadband solutions for both businesses and individuals around the world."
Nortel will work with Airspan Networks to market and evolve WiMAX solutions in the higher frequency bands for implementations that do not require full mobility. These solutions will also be used to eliminate the need for expensive wired T1/E1 or DSL circuits for wireless backhaul, creating a simpler path to profitability for service providers.
"We are combining Nortel's wireless and mesh technology leadership and ability to execute large network build-outs with Airspan's market-proven WiMAX portfolio to provide high-speed access for people living in areas where access via cable or DSL may not be available," Whitton said. "Beyond that, Nortel will build on its key intellectual property and standards contributions in OFDM, MIMO, and wireless mesh networking to deliver mobile WiMAX products in time for trials in mid 2006. The key to an operator's success in WiMAX will be the real-world implementation of networks, an area where
Nortel has vast experience and the resources to back it up."
"Interest in our WiMAX portfolio is at a high level and continues to grow," said Eric Stonestrom, president and chief executive officer, Airspan Networks. "We are very pleased that Nortel, a recognized leader in wireline and wireless technologies, has chosen to add our WiMAX solutions to its product line. Nortel is already a leading supplier of switching and mobility products to many of the world's largest carriers, and together we can bring truly innovative access solutions to service providers across the globe."
Nortel's optical backhaul technology, data networking solutions, and full suite of wireless services will be integrated with Airspan's WiMAX base transceiver stations (BTS) and subscriber terminals (ST).
Nortel will work in the development of WiMAX/WiBro solutions based on the 802.16e standard though the LG-Nortel joint venture. Nortel's fixed WiMAX solutions are expected to be commercially available in Q1 2006. Nortel's WiBro solutions are scheduled for commercial availability following the 2005 field trial deployment in Asia with the LG-Nortel joint venture, with additional mobile WiMAX solutions set to be commercially available following the 2006 trials in North America.
Nortel has contributed to the 802.16 standard by helping to develop underlying technologies like OFDM and MIMO for more than six years, and holds several key patents in these areas. In March 2004, Nortel completed a MIMO/OFDM lab demonstration of large data transfers with peak data rates at 37 Mbps over a standard 5MHz PCS band under conditions found on real-world cellular networks. Nortel is a member of the WiMAX Forum, an industry-led organization that promotes interoperability and certification of broadband wireless products for delivery of faster, more affordable data, voice and video services to businesses and consumers.
Asia Could be World's Largest Mobile Market Within a Decade
Online staff — Wireless Design & Development Asia
http://www.wirelessdesignasia.com/article.asp?id=532
Asia may become the largest regional mobile telecommunications market in the world over the next five to ten years, according to In-Stat. In 2004, there were nearly 740 million mobile users in Asia (including Japan, Australia, and New Zealand) with total revenue of roughly $180 billion, the high-tech market research firm says. By 2009, Asian mobile telecom revenues will reach over $260 billion, according to In-Stat's forecast. India will be the fastest growing entity in this region, with a 32.8% compound annual growth rate (CAGR) in terms of subscribers, and 31.1% by revenue, for the period from 2004 to 2009.
"In-Stat sees Asia as the most exciting market for investors, operators, equipment vendors, and handset manufacturers," says Bryan Wang, In-Stat analyst. "Operators like NTT DoCoMo and Singapore Telecom are seeking investment opportunities to expand outside their home markets."
South Korean handset vendors like Samsung and LG are significantly gaining market share in both high-end products and in developing markets. In the equipment area, Sony Ericsson is still winning within the region, with its advanced technologies and R&D facilities, extensive infrastructure, great product quality, and successful marketing strategies. However, US equipment vendors like Motorola and Lucent have made significant headway in the Asian market because of their large new deployments of CDMA technology.
WiMAX to Dominate Global Wireless Broadband Market
http://www.wirelessdesignasia.com/article.asp?id=533
Online staff — Wireless Design & Development Asia
Although the WiMAX movement continues to focus on mobile opportunities, it is the traditional fixed wireless markets that will remain the technology's bread and butter through 2009, according to a new report from Visant Strategies. The worldwide wireless broadband audience of 5 million in 2005 is expected to grow by 40% yearly through 2010 and Visant Strategies believes WiMAX vendors will be perfectly poised to take advantage of this building market.
Visant Strategies foresees a $3.4 billion annual opportunity for fixed and portable broadband equipment by 2010. "WiMAX will account for 50% of that multi-billion dollar market by the end of the decade, with much activity in the 3.5 GHz band," said report author Andy Fuertes. "The market for cable modem and digital subscriber line replacement is expanding today while WiMAX in the mobile network remains 2 years to 4 years away."
The mobile WiMAX community is faced with political, technical and competitive challenges, the report finds, impacting time to market, which is paramount since the 802.16e specification is not yet finished. "Certified mobile WiMAX equipment will arrive during or after 2007 and mobile carriers typically test new technologies from 12 months to 18 months before implementing them throughout the network," Fuertes said.
WiMAX will still become a factor in the mobile market in the years to come since most operators will not commit to additional major upgrades prior to 2009 and the standard is gaining support. Flash-OFDM, TD-CDMA and future revisions of 3GPP and 3GPP2 will also play a role in both the fixed and mobile markets. Some of these platforms, especially Flash-OFDM, already have considerable technical and time to market advantages over mobile WiMAX.
Africa - a hub for future big telecoms growth
http://www.engineeringnews.co.za/eng/news/today/?show=73075
Published: 2005/09/16
Telecommunications in Africa is the current big thing; this is because the continent contains 12% of the world’s population and only 3% of the world’s telephone lines, creating a multitude of opportunities, says arivia.kom regional manager: SADC and Southern Africa Paul Wilde.
“Africa is beset by poverty to such an extent that it was one of two central topics at the G8 summit this year. Developing telecommunica-tions infrastructure is a key stra- tegy to overcome the predicament,” Wilde stresses.
The growing interest in telecommunications is already visible. BMI-T, the African ICT analyst firm, predicts growth of 25-million mobile subscribers in the Southern African Development Community (SADC) and East African Commun-ity (EAC) by 2009. That is almost double the current subscribers. Another report suggests that, by the end of this year, there will be at least one mobile network in each country on the continent. It also predicts that the number of mobile users in Africa will reach 200-million by 2010. Wilde says that Africa’s great distances and low popu- lation densities make wireless networks the obvious choice for when deploying new infrastructure.
“In countries such as Nigeria, the ratio of wireless to fixed line is already 6:1.
“Code division multiple access (CDMA) is also likely to take off faster than global system for mobile communication (GSM) since older versions already have a large footprint and it is far cheaper than GSM.
“Operators launching from South Africa have extensive experience in, and knowledge of, GSM networks and are likely to stick to their knitting.” Another divide in deploying these two popular technologies, Wilde notes, will likely be the public and private sectors. “The more expensive GSM will be deployed in the public sector while cheaper CDMA, with the appropriate services, will most likely be used for consumers.
“For instance, CDMA already has a strong presence in Nigeria under the Starcomms banner, while MTN operates a GSM network there. “The underlying network infrastructure is not going to be the differentiator for telecommunications companies in Africa. “That mantle will be handed to the service providers and the offer-ings they wrap around the networks.
“That is primarily due to a strong Chinese presence on the continent pushing infrastructure at extremely competitive prices, even into war-ravaged and cash-strapped countries such as Angola and Mozambique. “India too, to a lesser extent, is making inroads into the African tele- communications landscape with its skilled and cheap workforce.” Wilde says service providers must come up with the right creative mix. That is because what works in the developed world or even in South Africa does not necessarily work for the rest of Africa. “Whatever the packaging, Africa is ready for the latest technologies that the developed and developing worlds have to offer, including older flavours of CDMA, CDMA 2000, GSM, GPRS, VoIP, network infrastructure, middleware, project management, hosting, customer care, revenue assurance, value-added ser- vices, professional services, fraud management and data recovery, among others. “This is no backwater market where first-world vendors can dump dated technologies, though funding can be a major hurdle to large-scale, investment-heavy telecoms projects in Africa.”
Verizon Unveils Global Cellular Data Access Plan
www.52RD.com 2005?9?16? ????? Mobile Pipeline ??8?
http://www.52rd.com/S_Txt/2005_9/txt1903.htm
Verizon Wireless'' Thursday unveiled a plan that enables its U.S. cellular data customers connect to Vodafone''s 3G cellular data networks in Europe and throughout the world, the two companies announced Thursday.
The companies said in a statement that Verizon Wireless customers who sign up for its GlobalAccess program will receive two 3G modems. One modem will be for use on Verizon''s CDMA-based 1xEV-DO cellular data network in the U.S. and the other will be for the GSM-based data networks in 50 countries that Vodafone either runs or roams to.
"Many of our enterprise customers have large numbers of employees who spend time traveling internationally," Cindy Patterson, vice president of enterprise data for Verizon Wireless, said in a statement.
Verizon said it will charge $129 a month for the GlobalAccess plan. That includes unlimited access in North America and 100 MB of usage in so-called Tier 1 countries such in Europe such as the U.K., German, France and Italy. Access in other countries, such as Australia, Brazil, China and Russia, will cost an additional $.03 per kilobyte. By contrast, Verizon Wireless charges $60 a month for unlimited access to its U.S. 3G network.
Vodafone, along with Verizon Communications, owns Verizon Wireless.
Vodafone Japan prepares for super-charged 3G
Staff and agencies
15 September, 2005
http://www.leadingthecharge.com/stories/news-0072742.html
9 minutes ago
TOKYO - Vodafone K.K., the struggling Japan unit of UK-based mobile phone giant Vodafone Group Plc, is preparing a new super-charged data service as it revs up spending on its network, an executive said on Thursday.
The company became Japan‘s first to start testing out a high-speed downlink packet access (HSDPA) service late last year, John Thompson, chief technology officer of Vodafone K.K., said at the Reuters Asia Technology and Telecoms Summit.
"We have not said anything about when we start," he said at the event at the Reuters office in Tokyo. "We are preparing our networks in Tokyo now. The test is going well."
HSDPA is a next-step technology developed for use over networks based on WCDMA, the world‘s most popular third-generation (3G) mobile standard.
It effectively turbocharges WCDMA networks, allowing for data transfers at up to 14 megabits per second, or several times faster than existing capabilities, and providing a critical boost for such data-intensive services as music downloads and video streaming.
Vodafone had about 15 million Japanese subscribers at the end of July, compared with 49.7 million customers at NTT DoCoMo Inc. and 20.4 million at KDDI Corp.‘s "au" unit.
DoCoMo has previously said it planned to roll out its own HSDPA service next year.
A third company, eAccess Ltd., said it would build a network with HSDPA capability if it received one of the three mobile licences that Japan is expected to issue later this year.
The government plans to grant the licences before introducing a number-portability rule in 2006, making it easier to switch providers by letting users take their phone numbers with them.
Thompson said the move to number portability should help shake up the industry, where many subscribers may have remained loyal to their carriers to avoid losing their phone numbers when they switched networks.
The new portability, coupled with the addition of new mobile licences, could also boost the handset industry, he said.
"There will be more handsets (developed), more sales," he said. "It will be a very active market for around a year or so."
Competition in the industry is getting tougher as Japan approaches saturation, with about 88.6 million Japanese, or 70 percent of the population, owning mobile phones.
The Japan Vodafone unit is trying to recover from a tumultuous period in which sales of its highly anticipated 3G phones fell flat, its leadership changed twice in a year and it posted an industry-record monthly loss of customers in January.
The company‘s investment in its network also dropped from 2003 to 2004.
In the current year, however, capital spending is returning to the growth column, with an expected rise of about 40 percent from last year, Thompson said.
"Out strategy is to make up for that slow year and fill in the weak spots on our network," he said.
Getting a Leg up on Growth
Thursday September 15, 01:32 PM
http://uk.biz.yahoo.com/050915/244/fs5g4.html
As the manager of a large-cap growth fund, Gary Rolle of Transamerica Premier Equity Fund/Inv (TEQUX) keeps a relatively long-term investment horizon. His fund's annual turnover totals only 34% -- representing an average holding period of about three years per issue -- compared with an average of 87% for the peer group.
The $200 million fund returned 23.64% for the one-year period through Aug. 31, vs. a 12.55% gain for the S&P 500-stock index. The fund registered an annualized return over three years of 18.37%, compared with a 12.02% showing by the index. Over five years, the fund lost 4.21%, while the S&P 500 dipped 2.74%.
Volatility, as measured by standard deviation, comes in at 13.24, below the peer group average of 13.95. The fund also features an expense ratio of 1.29%, lower than the peer average of 1.44%. Based on risk and return characteristics over the last three years, S&P gives Transamerica Premier Equity Fund/Inv its highest rank of 5 Stars.
In March, co-manager Jeffrey Van Harte left the fund and moved to Delaware Investments. Rolle says this change didn't affect the fund's investment strategies. Carol Wood of Standard & Poor's Fund Advisor spoke recently with Rolle about his investing strategy. Here are edited excerpts of their conversation:
How would you describe your investment philosophy?
We're a concentrated growth fund that relies upon our own bottom-up intensive research. We do use Wall Street and outside information sources, but more as a filter.
We're looking for industries and companies where we perceive positive changes in management, in the business environment, or in new products. We also look for highly competent managements who are visionaries, have a strong track record, and will likely outperform their peers as they implement their business plans.
We invest in companies that generally have a low cost of capital and a high return on capital, which provide them with growing free cash flow. We buy good or great assets at a fair price. We're not a value investor, but we know that valuations can go to ridiculous levels when trends are very hot. We have low turnover that usually falls between 25% and 40%, and we typically hold between 25 and 35 names.
What's your investment strategy?
We bring ideas to the table by involving all 14 investment professionals who work on the Premier Equity funds. Each senior member of this team manages money, so when a name comes up, if it fits their product, they can purchase it or not after we discuss it. In this fund, I make the final decision.
We also attend industry conferences, meet with company managements, and come up with an overlying theme of where the economy is going and where we might find opportunities. These themes can be demographic, or they may relate to technology or productivity-enhancing developments in logistics and outsourcing.
We look for areas of the economy that are likely to grow. That's why, for example, we hold Qualcomm (NASDAQ: QCOM - news) (QCOM). With its intellectual property in the growing CDMA [code division multiple access] market -- it designs and has patent rights to the chips -- anyone who uses those patents needs to pay them. As such, they have a very high-return business model.
What are your buy criteria? 9
The first thing we look for in buying a stock is an unexpected acceleration of cash-flow growth. Management's track record is another. If there's a change in management, we analyze how that could present an opportunity. They have to be highly ethical and sensitive to shareholders.
Does that put you in the socially responsible camp?
No, but a short-term focus on shareholders is not what we're interested in. We're looking for a long-term investment, which involves employees as well as shareholders. Corporate culture is very important to us. For example, we like Harley-Davidson (HDI) for the way they view their distribution system and customers. The whole structure of the company moves forward together.
When do you sell?
We don't have a clear formula of when to sell a stock. But we would do so when we find a better issue, are disappointed with management's prospects, or see any radical change in fundamentals. If a stock becomes clearly overvalued, we would sell for diversification purposes.
How do you manage risk in the portfolio?
We compare our diversification with that of the S&P 500, and we like to have less than 25% of our assets in any particular sector. We will not invest more than 5% of assets in a single security, and we start trimming when the holding gets to 6% to 8%.
What are your top holdings and sectors?
As of July 31, our top five holdings were Genentech (DNA), Qualcomm, WellPoint (WLP), Chicago Mercantile Exchange Holdings (CME), and Microsoft (NASDAQ: MSFT - news) (MSFT).
Our top sectors comprised consumer discretionary [23% of the fund], information technology [22.7%], health care [17.4%], consumer staples [10.2%], industrials [10%], financials [7.6%], and energy [5.1%].
Which of your sectors have done the best over the last three years?
Health care. We've owned WellPoint (NYSE: WLP - news) , a managed care company, and Zimmer Holdings (NYSE: ZMH - news) (ZMH), which makes artificial knees and spine medical implants -- sales of artificial knees are growing 25% a year. We also own Genentech (NYSE: DNA - news) and Allergan (NYSE: AGN - news) (AGN), which makes Botox and other skin-related pharmaceuticals.
We have avoided the pharmaceuticals, consumer nondurables, and retail sectors.
Were there any recent changes to the portfolio?
In the first quarter, we finished selling Lexmark International (LXK). We have begun to buy Caterpillar (NYSE: CAT - news) (CAT), Suncor Energy (SU), and Schlumberger (SLB).
Do you have an outlook for your asset class?
I think large-cap growth will outperform in the second half of this economic cycle, especially as interest rates go up. Rising rates have a more negative effect on smaller companies.
Also, the larger companies can take advantage of the worldwide market as the dollar weakens. For example, companies like Caterpillar are already building capacity worldwide, while Jacobs Engineering Group (NYSE: JEC - news) (JEC) is getting order growth at 20%.
Where are we in the economic cycle?
We are one-half to two-thirds of the way through a typical cycle. We assume that every cycle will be the longest in history, so we don't get whipsawed -- where we sell and have to buy again. We're not trying to trade on short-term momentum.
We believe the economy will remain strong through the first half of next year. Orders have picked up across the country, especially in capital goods. People are starting to talk about expanding purchases of telecommunications equipment, computers, and new facilities.
The commercial- and hotel-building booms haven't occurred yet. So companies like Marriott (MAR) are making a lot of money right now and will for another three to four years, when many more hotels are constructed. The bottom line is that we might have low rates for another half a decade. We could have a very long cycle.
Are you taking into account what's happening in Iraq?
Taking into account what we hope will happen in Iraq -- that there will be peace, while U.S. expenditures for war will be reduced and diverted to internal uses. We're always thinking of things that can occur that will give us another leg for growth.
I’m on the plane!
13/09/05
SOURCE:Flight International
In-flight mobile phone use is on the way. But after surmounting the plethora of legislative hurdles, will it succeed where satcom-based telephony failed?
http://www.flightinternational.com/Articles/2005/09/13/201440/+I%E2%80%99m+on+the++plane!+.html
After years of the in-flight entertainment and communication industry talking about it, the day when passengers will be allowed to use their mobile phones in-flight is drawing near.
Whether you view this as a natural progression in in-flight communications or a move that will adversely affect the airborne environment and cause more problems than it’s worth, it is going to happen in the not too distant future.
The two issues that have prevented mobile phones being used on aircraft to date – the technology to control the mobile phone signal to ensure it does not interfere with aircraft systems, and satisfying regulatory authorities that mobile phone use is safe and will not affect terrestrial communications systems – are about to be resolved. The technology is ready, with service providers, including AeroMobile, AirCell and OnAir, preparing and testing their wares, while the regulatory hurdles, once seen as insurmountable, are beginning to be overcome.
The AeroMobile joint venture of ARINC and Telenor is likely to be the first to market, with its voice and data services. AeroMobile’s service start is geared around the plans of its launch customer, which signed a letter of intent in February, says David Coiley, director of aircraft mobile connectivity. AeroMobile is expected to reveal the identity of its launch customer at next week’s World Airline Entertainment Association (WAEA) show in Hamburg, Germany.
The airline is believed to be based in the Middle East and is adopting AeroMobile fleetwide. The service provider has a second unidentified customer and is working with “a number that are actively interested in the technology”, says Coiley, adding that airlines have done considerable market research on in-flight mobile use and have positive requests for it from their passengers.
The first installation, on a Boeing 777, is scheduled for the first quarter of 2006, ready for certification flights and service start as soon as regulatory approval is in place, says Coiley. More should be known about the regulatory status at the end of October when Europe’s communication authority, the European Committee of Posts and Telegraphs (CEPT), is due to make a decision on a harmonised regional framework that will pave the way for services to be launched, although Coiley concedes this decision could slip by a quarter.
In the meantime, AeroMobile is ensuring all the parts of its end-to-end solution are in place, including the technology and agreements with mobile service providers.
Broadband platforms
AeroMobile will operate via classic Inmarsat Aero-H/H+ satellite communications systems already on board 1,900-plus long-haul airliners. “We took a key decision early on not to be dependent on factors we had no control over,” says Coiley, adding that because it is using existing “classic” Inmarsat services, it can move quickly. AeroMobile plans to progress to broadband communications platforms as they become available. But unlike expensive satcom-based telephony, AeroMobile’s GSM service will be priced in line with international cellphone roaming rates, at an average of $3.50 a minute – a price that is acceptable according to market research, says Coiley.
The system includes a server, a “picocell” base station transmitter and a cabin cellphone management unit to prevent mobiles interfering with terrestrial systems. Irish firm Altobridge is providing the software, Miltope provides the server, IP.access the picocell and Intheairnet has developed the cabin crew control panel to enable cabin crew to control the service, including turning off the voice service at certain times.
Since April, the system has been undergoing a “very rigorous workout” on the Boeing 777-200LR, which recently completed its world tour. The AeroMobile system was installed on the aircraft as part of a demonstration of new cabin features. As a result of the installation, AeroMobile has more than 24 hours of call time logged on the system, says Coiley. AeroMobile and Boeing are now exploring the feasibility of line-fitting AeroMobile services on new Boeing aircraft, starting with the 777 family.
Next after AeroMobile is OnAir, which is targeting the second half of next year to launch its in-flight GSM service. “This is assuming no significant unexpected delays in the regulatory and certification processes,” adds George Cooper, chief executive officer of the Airbus, SITA, Tenzing venture.
OnAir plans to offer its GSM service in Europe first, followed by the Middle East and Asia. “We are currently working with a number of airlines in Europe, the Middle East and Asia, and we expect to make an announcement as to our launch customer in the very near future,” says Cooper.
OnAir’s system works in much the same way as AeroMobile’s. It comprises a picocell to provide the radio interface to mobile phones in the cabin; an onboard channel selector to ensure onboard mobile phones operate in a mode compliant with certification and regulatory requirements; a server to manage communications centrally; and an air-to-ground modem. Siemens is providing the picocell and onboard channel selector, Miltope is supplying the airborne server and German firm Triagnosys the software.
A passenger’s GSM mobile phone will connect to an onboard mini-GSM network in an international roaming mode. In turn, the mini-GSM network will be connected to the ground infrastructure via an air-to-ground link and the OnAir ground infrastructure will be connected to the public networks.
Unlike AeroMobile, OnAir’s service will use Inmarsat’s new Swift Broadband service as the air-to-ground link. Swift Broadband will be available through Inmarsat’s new Inmarsat-4 satellites, the first of which was launched in March. The second satellite is due for launch later this year, and the third satellite will follow.
OnAir conducted flight tests last year and more are planned soon. Flight tests leading to certification are planned for late 2005/early 2006 and commercial trials are likely to follow, says Cooper.
OnAir plans to offer a suite of services at a different prices, ranging from text messages at about ¢50 a message, to premium internet and corporate network access at the top of the scale.
Premium services will be available for the whole flight “at competitive rates”, says Cooper. “Passengers will be able to choose from a menu of services, billed according to what is most convenient to them, including their monthly phone or internet service provider bill.” Individual mobile operators will set phone charges. Data services are likely to be about $9.95 a flight to send and receive an unlimited amount of emails and $4.95 for up to four hours’ email access. “OnAir will charge the airlines for the use of the system and airlines will have the choice of how they charge their passengers,” says Cooper.
Regulatory issue
The only thing that stands in the way of OnAir’s launch is the regulatory issue, but Cooper says that process is “moving forward steadily and we are not seeing anything that we believe will not be insurmountable”. Cooper concedes the regulatory process is complex because of the involvement of various bodies in a number of countries.
Regulatory and certification issues go hand in hand when it comes to gaining approval for the onboard use of mobile phones, says Andrew Charlton, OnAir’s head of regulatory affairs. “The regulators will not be comfortable unless the equipment is certified and the certification bodies will not be comfortable about the equipment being used unless the regulators have approved its use,” he says.
OnAir has adopted a “horizontal approach” to gaining approval, whereby a law of state of registration of the aircraft applies to the approval of in-flight telephony, rather than needing approval from each country over which the aircraft flies. But for this approach to work, a harmonised regional-level framework is required.
While Europe’s CEPT is working on its regional framework, a draft framework is being considered by the Asia Pacific Telecommunity which is expected to be referred for approval before the end of this year. “In both cases, the framework sets out that licences should be issued by the state of registration of the aircraft, provided it can be shown there is no harmful interference to either avionics or terrestrial systems,” says Charlton.
In the Middle East, OnAir has started talks with regulators and the technical group looking at interference issues. In the USA, the company is participating in the consultation process as part of the US Federal Communications Commission’s (FCC) notice of proposed rule making (NPRM) which was issued in February with a view to the FCC relaxing its ban on the in-flight use of mobiles. The FCC is expected to issue a final ruling next year.
On the certification front, OnAir is working through Airbus, with the airframe manufacturer initially seeking approval for a system for the Airbus A320 series family. That work is continuing smoothly, says Charlton, and is expected to be concluded by mid-2006.
US companies are also preparing their services. Colorado-based AirCell, for example, has probably been talking about the in-flight use of mobiles for longer than anyone else. In early September the company launched formal customer demonstrations of its broadband system, which supports in-flight mobile use in addition to internet, email and other data services, on a Dassault Falcon 2000 business jet.
AirCell’s broadband system effectively turns the aircraft into a small office building, says chairman and chief executive Jack Blumenstein, with a wi-fi access structure connected to a communication portal linking the aircraft to the ground and terrestrial networks.
An onboard picocell allows both GSM and code division multiple access (CDMA) mobile phones to be used, while a telecommunications router provides high-speed, in-cabin wireless connectivity for wireless laptops and personal digital assistants.
The system uses standard off-the-shelf, low-cost equipment and leverages infrastructure and technology already on the ground, which allows AirCell to deliver a system at the lowest possible cost, says Blumenstein. The goal is to deliver an equipment cost to airlines of $100,000 or less for a typical aircraft installation.
User costs will be comparable to those on the ground, he says, with a wireless session typically costing about $10 and voice around the ¢25-30 a minute roaming charge charged by providers on the ground.
All that is holding up AirCell is the regulatory side. The company is waiting for the US FCC to conduct its spectrum auction in the 800MHz band that would allow it to offer broadband services. This auction is expected in the second quarter of next year, to be followed by four or five months of regulatory work.
At the end of this year, AirCell expects to have its launch airline in place, with trials to be scheduled as soon as the FCC’s auction process ends. Late next year or early 2007, AirCell expects its first airline customers to start service, says Blumenstein. The company is engaged in “late-stage discussions” with half a dozen airlines, he says. Boeing has also been testing its in-flight wireless communications on the Connexion One 737-300 test aircraft in conjunction with communication technology company Qualcomm.
Last month the partners said they had demonstrated the simultaneous use of CDMA and GSM phone technology.
The demonstrations involved use of a small in-cabin CDMA2000 and GSM picocell with the onboard network connected to the global terrestrial telephony network using the Connexion air-to-ground satellite broadband link.
Passengers on the test flights used Qualcomm’s BREW system, which allowed them to download business applications, games, information and communication applications in-flight. They could also download and watch video clips and make phone calls on different mobile phones, including 3G devices.
The partners say they will continue with research and development to support the feasibility of in-flight mobile phone use. Boeing says it is working on enabling technology now to ensure it is ready to provide service when the market is ready.
Boeing says several of its Connexion customers have expressed interest in the technology, but many are waiting to see the outcome of regulatory issues and passenger demand before deciding.
The not insignificant social – or anti-social – issues associated with passengers talking – or, more likely, shouting – into their mobile phones in-flight is also being seriously considered by service providers.
The service providers have an important role to play in managing the social issues, says AeroMobile. “We see it as our task to convince passengers that it’s safe and we have to convince them they won’t get ripped off, but also that they need to be considerate to fellow passengers,” says Coiley. He believes some of the hysteria over social issues has been overblown and most passengers will behave reasonably. A social etiquette will develop, as it has on the ground, with, for example, passengers moving from their seats to another area to take calls, Coiley suggests.
OnAir says it is working with airlines and mobile phone manufacturers on a number of social issues. “In particular, we are looking closely at the management of the cabin social environment, including the disabling of voice service, while still allowing SMS and data, during ‘night-time’,” says Cooper.
Social issues
Despite passengers having access to telephony in-flight for more than a decade and the service never really taking off – primarily due to costly satcoms service coupled with unfamiliarity – service providers are convinced that in-flight telephony will be a winner this time thanks to mobile phones.
AeroMobile’s Coiley concedes that many entertainment and communications options offered onboard aircraft in the past have failed to deliver, but in-flight mobile telephony is unique. “This is the first application where passengers do exactly what they do on the ground,” he says, adding that they have overcome the unfamiliarity concept at the same time as making the service more economically appealing to passengers.
“A substantial amount of research has been conducted by a number of companies and the results tell us that the consumer expects to be able to use his/her mobile phone wherever they are,” says OnAir’s Cooper. He adds: “OnAir is meeting these expectations by providing travellers with the choice to use their mobile phones onboard. The choice is a real one because the cost and user-friendliness factors that were previously missing are now in-line with customer expectations.”
EMMA KELLY/PERTH
MAKING WAY FOR NEXT-GEN MOBILE
Wednesday 14 September 2005
Thailand's mobile phone operators are preparing for multimedia 'third-generation' services
http://www.bangkokpost.com/Database/14Sep2005_data51.php
AIS recently introduced an m-payment service, where new mobile phones embedded with a wireless chip can be used to pay for items at vending machines.
A phone user links to a mobile games site by taking a picture of a 2D barcode printed on the game poster. Such services are expected to be common with 3G networks.
The next generation of mobile services, so called 3G, is making its mark in many parts of the world, and while Thailand is slow to join the new generation it is making preparations.
All five mobile phone operators here _ market leader AIS with 15 million subscribers, DTAC (7.8 million ), Orange/True (3.4 million), Hutch (700,000) and Thai Mobile (around 100,000 users) _ have plans to upgrade their networks to deliver 3G services once the National Telecommunications Commission (NTC) prepares 3G licences, which is expected around December this year.
Once 3G does arrive, expect new services such as video calling, interactive games with rich multimedia and even the ability to watch TV programmes via your mobile phone screen.
Such services are possible because third generation mobile networks will be able to, theoretically, offer data speeds of up to 2Mbps, although in reality this may be somewhat slower. So to download, say, an MP3 song via a 3G network would take only seconds rather than minutes, as is the case with today's network technology.
South Korea's SK Telecom, which introduced 3G services to its 19 million subscribers at the end of 2003, said the faster networks could deliver new digital "lifestyle" and interactive services to mobile users, such as video calls, virtual home environments, video-on-demand and high-resolution mobile games.
The company already offers video calls and music downloads based on a monthly subscription fee, with the service gaining some two million subscribers. It also provides an interactive digital broadcasting service, where users can download their favourite entertainment programmes or watch digital TV at a time of their choosing.
Infrastructure for 3G network
A model shows the latest Nokia N90 3G phone, which supports WCDMA technology. The phone has a 2-megapixel camera with 20-times zoom lens and photo sharing features.
When it comes to infrastructure, the current GSM operators (AIS, DTAC, Orange) will upgrade to a technology called W-CDMA (Wideband Code-Division Multiple Access), while Hutchison CAT Wireless Multimedia, the country's only CDMA 2000 operator, will upgrade to the CDMA 2000 1x EV-DO standard, which it introduced for testing towards the end of last year.
CAT Telecom, which has a 26% share of Hutch, also has its own 3G plans for some provincial areas. It has hired Huawei Technology of China to build 1,600 base stations for CDMA 2000 1xEV-DO in 51 provinces, with an investment of 7.2 billion baht.
CAT Telecom senior executive vice president Sompol Chanprasert claimed that the enhanced network could provide data speeds of up to 3.1Mbps and that it would be the first nationwide 3G network here.
He said it would support voice over IP, video phones and various multimedia and entertainment applications.
"The operation will begin in January next year," he added.
Meanwhile the other government-owned operator, TOT's ThaiMobile, claims that it is the only operator currently with a 3G licence.
Dr Jesada Sivaraks, a spokesperson for Thai Mobile, said the investment for the next generation mobile phone network could be as high as 10 billion baht.
As a result, he suggested that all GSM operators should share the cost of the investment for cell sites, radio access and core networking equipment.
Thai Mobile is a joint venture between TOT Corp (58%) and CAT Telecom (42%). The company was set up in 2000 after the government approved its use of the necessary 1900 MHz radio spectrum, and began operating in 2002.
"Although we are not a market leader, we want to be a technology leader," Dr Jesada noted.
TOT said its mission was to provide a 3G network and that it had already imported some equipment for the purpose and was waiting for a green light from NTC to proceed.
However, NTC may yet halt the implementation plans of Thai Mobile.
NTC deputy secretary-general Tossaporn Ketadisorn said NTC was considering taking back the 3G licence.
He said NTC gave the licence to TOT Corp and CAT Telecom, not Thai Mobile, which he claimed did not have the right to operate 3G services yet.
The NTC is expected to prepare guidelines for operators to submit their requests for 3G licences in December, although the issue is not high on its agenda.
"3G is not yet our priority today," he said, noting that the NTC would rather consider ways to force mobile operators to share their networking resources for 3G.
However, AIS vice president for technology management, Kriengsak Wanichnatee, suggested that NTC did not need to issue regulations concerning network sharing.
"Sharing assets can drive our network costs down so we have agreed with ThaiMobile to co-operate in any investment," he said. "The NTC should rather consider allocating spectrum for 3G, which will be good for every operator," he added.
Spectrum needed
Nokia's N91 mobile phone with 4GB hard disk _ enough space for storing up to 3,000 MP3 songs. It supports 3G technology and will be available here soon.
Meanwhile Qualcomm, the US company behind the CDMA standard, said that the common frequency band used around the world for 3G was 2.1GHz. Qualcomm country manager Kaneungjit Suriyathumrongkul said Thailand should also follow this because it will lead to economies of scale for equipment and handsets.
"Although any frequency can be allocated for 3G networks here, we should follow the global market," she said.
She also suggested that CDMA operators such as Hutch that are using different technology to the GSM operators had an advantage, as their networks can be more easily upgraded to allow for higher speeds.
The Qualcomm country manager said that so-called CDMA 2000 1xEV-DO technology could be upgraded to allow for data speeds of up to 46Mbps, which she said would be introduced by around 2008.
Meanwhile GSM operators that are considering W-CDMA also have an upgrade path to higher speeds. So called HSDPA (high speed downlink packet access) offers download speeds of up to 14 Mbps and could be available within the next two years.
But Ms Kaneungjit said the EV-DO CDMA from Qualcomm would continue to hold the advantage in terms of network scalability and new multimedia services.
Future coverage
In the meantime, Thai operators are mixed in their opinion on the potential of 3G services here.
True president Supachai Chearavanont said 3G would be a "must", but he added that the service would be offered only in the big cities.
"It is not expected for everyone because the network is still voice-based and there is no advantage in many cases over 2G today," he said, noting that in theory, the next generation network can support up to 2Mbps, but in reality the networks would offer a maximum speed of only around 300kbps.
He said that there is already talk of so-called 4G networks, which would offer true high-speed service.
He claimed NTT DoCoMo in Japan was already moving to 4G and that would be the real change in mobile data transmission for users. In May, NTT DoCoMo did a field trial of 4G technology and achieved 1Gbps real-time packet transmissions on the downlink when moving at 20 kilometers per hour.
Meanwhile Ucom, which owns the DTAC mobile network, is more likely to take a "wait-and-see" approach to 3G. Chairman Boonchai Bencharongkul said in this case the group preferred to be a follower.
"We learned from our lessons of being a leader and getting huge losses many times," the chairman said, pointing to the one billion baht it lost on the Phone Point project, another one billion baht from Iridium satellite mobile service and 10 billion baht lost on the Direct2Home broadcasting service.
"We want to focus on services that utilise the existing network today rather than rush into an investment in a new network," Boonchai said.
In his opinion, the NTC was right and either TOT or CAT Telecom should invest in a 3G network and let other operators rent or share this network infrastructure.
CSFB Adds QCOM to U.S. Focus List.
Courtesy of czechbabe2 on Yahoo QCOM Board:
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4686818&tid=qcom&sid=468...
by: czechbabe2 (32/F/Carlsbad,Ca) 09/13/05 09:17 am
Msg: 573466 of 573466
CSFB Adds QCOM to U.S. Focus List.
Qualcomm is our top pick in the US wireless Equipment sector as we believe that
QCOM is uniquely positioned to benefit from the impending global adoption of the
Third Generation(3G) wireless standard.Recent evidence suggests the long awaited
inflection point in the 3G ramp may be just ahead, with adoption of the WCDMA
format to accelerate in Europe by year-end and continue through 2006, though we
note than there is limited upside to our CY05 WCDMA handset unit est.of 45M.Our
12-18 month target price of $50 represents 18% upside from the current
price.
Qualcomm "overweight,"target price raised from $48 to $50
Monday, September 12, 2005 11:37:35 AM ET
Prudential Financial
NEW YORK, September 12 (newratings.com) - Analysts at Prudential Financial reiterate their "overweight" rating on Qualcomm (QCOM.NAS). The target price has been raised from $48 to $50.
http://www.newratings.com/analyst_news/article_1011983.html
Believe in the Tech Rally, or Miss It
By James J. Cramer
RealMoney.com Columnist
9/12/2005 10:55 AM EDT
Click here for more stories by James J. Cramer
http://www.thestreet.com/_googlen/funds/smarter_up/10241961.html?cm_ven=GOOGLEN&cm_cat=FREE&...
This column was originally published on RealMoney on Sept. 9 at 8:39 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
It happened, as it always does, right on schedule, hurricane and all.
The tech rally. You can count on it. As the orders build for the stuff for the holiday season. As the conferences turn the heat on.
And suddenly, you go from thinking, "I have plenty of time to buy this stuff," or, "This stuff is going to kill me for my performance," to, "Will it ever come down again?"
That's where we are right now. Lots of denial. Lots of guys saying, "You know, I missed the rally, I have missed Qualcomm (QCOM:Nasdaq - commentary - research - Cramer's Take)" or Texan (TXN:NYSE - commentary - research - Cramer's Take), or Marvell (MRVL:Nasdaq - commentary - research - Cramer's Take), or Broadcom (BRCM:Nasdaq - commentary - research - Cramer's Take), or Intersil (ISIL:Nasdaq - commentary - research - Cramer's Take) or Motorola (MOT:NYSE - commentary - research - Cramer's Take).
It is my job to tell you that you haven't. But you will.
There won't be a big pullback, not when everyone's thinking, "I hope it comes down."
Look at Qualcomm. That company isn't even supposed to have a good quarter. It hasn't done well in a year. I waited in my charitable trust, ActionAlertsPLUS, for it to go back to the mid-$30s so I could buy it. And waited. And waited some more.
I found myself hoping that Nat Semi (NSM:NYSE - commentary - research - Cramer's Take) would say bad things so I could buy Qualcomm.
When it didn't, I swallowed hard and bought some more.
That's where we are now. Time to stop denying. Time to start believing.
Qualcomm bangs 3G drum in Canberra
Chris Jenkins
SEPTEMBER 13, 2005
http://australianit.news.com.au/articles/0,7204,16581938%5E15317%5E%5Enbv%5E15306,00.html
PIONEERING CDMA telephony developer Qualcomm has been lobbying the federal Government about the CDMA standard, saying its potential is not well understood in Canberra.
Qualcomm Australia manager Rob Hart said the company discussed the matter with the Department of Communications, Information Technology and the Arts, and advisers to the Communications Minister, Senator Helen Coonan.
Politicians and bureaucrats in Canberra were well aware of the rival GSM-based wideband CDMA (WCDMA) third generation (3G) mobile standard, but little was known about the CDMA-based 1xRTT or EV-DO standards, Mr Hart said.
"We wanted to make them aware that we had a great asset could be used to help solve some of the problems in getting broadband out to rural and regional communities."
Telstra is the only operator running an EV-DO network in Australia, using it for its wireless broadband service.
Federal schemes, such as the Higher Bandwidth Incentive Scheme (HiBIS), designed to encourage the uptake of broadband in outlying areas, formed part of the discussion, he said.
"We talked to them about HiBIS to see if it would be a candidate, and they agreed that there was nothing to stop anyone applying for funds from using a wireless technology."
The interest in AAPT's proposed auction of its CDMA spectrum licences earlier this year showed CDMA and its derivatives need not be a Telstra-only technology, Mr Hart said.
There was "untapped interest" in the standard, he said.
"On the surface it would appear to be Telstra-only, but I think there may be others that, if they could access the spectrum, would use it," he said.
Although it has attracted interest from groups interested in regional wireless local-loop services, AAPT is believed to have backed away from moves to auction its unused licences.
Release A of the technology, due in the second half of next year promises download speeds of up to 3.1Mbps and an uplink capable of 1.8Mbps.
That release will include quality of service features to allow voice over internet protocol and the use of different carriers' infrastructure to increase download speeds.
The Australian
Vendors Investing Heavily In Mobile TV
By Rick Merritt Courtesy of EE Times
September 12, 2005
Page 1 of 3
http://www.mobilepipeline.com/showArticle.jhtml?articleId=170702174&pgno=1
You want TV with that?" The cellular industry hopes it won't be long before the average customer answers in the affirmative, making mobile television the first mainstream application for wireless data. Construction of more than $1 billion in chip sets, handsets and mobile broadcast networks is under way in anticipation of a market that could be in the tens of billions of dollars.
Market watcher Informa Telecoms & Media (London) predicts there will be more than 70 million TV-ready handsets sold annually and 124.8 million mobile-TV users by 2010. The Shosteck Group (Silver Spring, Md.), in its most pessimistic scenario, projects mobileTV revenues of $9.7 billion by 2010; its optimistic projection is $27 billion.
That said, a few realities keep the wireless mass markets of TV and cellular from spawning the hoped-for bonanza. Low-power, integrated chip sets are not ready. Handsets — even before they take on TV — are saddled with small screens, only fair battery life and mediocre reception.
Multiple network architectures may confuse the market as they compete to carve out a slice of the pie. Most of them have yet to complete successful technology and commercial trials; some lack adequate spectrum. And broadcasters still have little content tailored for mobile users.
"Carriers are in the due-diligence phase of evaluating the technologies," said Jeff Lorbeck, senior vice president and general manager for MediaFLO, a subsidiary of Qualcomm Inc. that will spend $800 million over the next five years to build a mobile multicasting network based on a new spec that it has yet to be released publicly.
"I think the carrier commitments will come very soon — probably before the end of the year in the U.S. — and commercial services in 2006 are a very likely reality," said Bob Shallow, a director of music and rich media for Nokia Corp.
More than 10 trials — in places ranging from Helsinki to Barcelona and Pittsburgh to Australia — are in the works for the DVB-Handheld multicasting network architecture that Nokia favors and that Europe's Digital Video Broadcasting Project (Geneva) codified as a standard in late 2004. "All the pilots have the chance of becoming commercial services," Shallow said.
"It's still early days, but the indications are that TV is the single wireless application with the biggest impact," said Phillip Alvelda, chief executive of startup Idetic Inc. (Berkeley, Calif.), which has operated a mobile-TV service over existing cellular networks since November 2003. The $10/month MobiTV service now has 450,000 subscribers.
"This is so good for carriers" that they're requesting new phones come preloaded with the application, said Alvelda. Idetic's service is offered by several carriers, including Cingular and Sprint in the United States and Orange in Europe, and Alvelda claims he has 30 carrier deals in the pipeline.
Many carriers are thinking about building their own DVB-H nets. But in the European home of the technology, it's TV broadcasters, not cellular carriers, that have the required spectrum (search www.eet.com for article ID: 60405616).
That has opened the door to an unlikely leader. Crown Castle International Corp., a company that manages a network of more than 10,000 wireless towers, is spinning out a subsidiary to tap its towers — and its $12 million in purchased 1,670- to 1,675-MHz spectrum — for a national mobile-TV network in the United States. "We're probably the first along in terms of getting a DVB-H network up and deploying services," said Michael Ramke, vice president of business development for Crown Castle Mobile Media.
Crown Castle describes its offering, which it will sell wholesale to cellular carriers, as the basic cable of wireless. The suite of about 10 video channels — including news, sports and entertainment — will offer QVGA-resolution (320 x 240) video running at 15 to 25 frames/second, depending on the carrier. The service will also include about 20 audio channels for various genres at 32 kbits/s, as well as some excess capacity for carrier-defined programming.
Later this year, Crown Castle plans to announce handset, carrier and content partners when it turns a technology trial that's been running for a year in Pittsburgh into a full-blown commercial trial. Full commercial service is expected to switch on by June, with "a fast path to the top 30 U.S. markets," said Ramke.
Motorola, Nokia and Samsung participated in the tech trial, and Microsoft will provide its media player and digital rights management software. Crown Castle won't say where it will first launch its mobile-TV services or how long it will take to go nationwide.
Good news, bad news
The good news for Crown Castle is that it has the spectrum and towers it needs, a complete and open standard in DVB-H, and a core group of technology partners.
On the downside, it is limited to a relatively low, 2-kW maximum transmission power on a relatively high, 1.6-GHz frequency. Higher frequencies translate to shorter propagation distances — meaning Crown Castle's services could require more towers, basestations and operating costs and could generate greater multipath-interference problems than competitors such as archrival Qualcomm's MediaFLO.
FLO, or forward-link-only, technology can transmit at up to 50 kW at its given 700-MHz frequency, though Qualcomm won't say what average-power levels it will actually use. The company plans to employ two or three high-power transmitters in urban areas, where Crown Castle will need to use 20 to 30, implying lower costs of service for FLO.
In addition, FLO can pack 20 channels into 6 MHz of spectrum, compared with nine channels for DVB-H. And it has a channel change time of 1.5 seconds, vs. 5 seconds for DVB-H.
But Qualcomm's 700-MHz spectrum is encumbered by the large number of analog UHF TV stations broadcasting at or around channel 55 — crowded conditions that inhibit access to as many as 180 million users, according to Crown Castle. Qualcomm is already approaching some of those broadcasters, but it may have to wait until late 2009, and a mandated U.S. deadline for the shift to digital TV, before it can assemble a nationwide network.
Further, the FLO spec, while apparently finished, has yet to be openly reviewed and codified by the industry. Qualcomm set up the FLO Forum, with 14 industry members, in late July to review the basic physical-layer spec under a nondisclosure agreement — a process that will take less than a year. The group must then shepherd the spec through industry standards organizations, which will take at least another year.
On the business side, Crown Castle admits it lacks the funding to build a nationwide net. The company has annual revenue of about $600 million and has sustained significant losses in four of the last five years. It is in talks with equity investors for spinning out its mobile unit to pay for building its network. In addition, it has no past links to content providers, and it is not known for its marketing prowess — two hurdles for success in mobile TV.
For its part, Qualcomm said it may take on investors. But with annual revenue growing toward $5 billion and a track record of profits, the company may have the ability to finance a net buildout alone and then spin out the unit in a public offering. And as the licensor of core CDMA technology, Qualcomm likely has deeper carrier partnerships than Crown Castle.
Qualcomm also has been developing relationships with content companies for several years, courting them to develop applications and services for its Brew handset software platform. And it has earned some consumer marketing expertise promoting Brew.
The MediaFLO service is expected to launch in October 2006, with about 10 QVGA video channels running at up to 30 frames/s, at a monthly subscriber cost of less than $20. FLO can deliver a maximum of 20 video channels and 1,000 minutes of video clips.
Now playing
As Crown Castle and Qualcomm race to build their new multicast nets, startup Idetic is already gaining traction for a service delivering television over today's cellular networks.
The startup's MobiTV service can deliver streaming video over links as narrow as 18 kbits/s. Idetic has relationships with more than 25 content providers and offers services to any handset that supports Java or Brew on the nets of at least four cellular carriers. It is also starting a trial to deliver standard-definition video over Wi-Fi, so future coffee drinkers at Starbucks might watch TV on their laptops.
"By the time Crown Castle and Qualcomm launch their services, we expect to have 1 million to 2 million subscribers and the ability to use whatever infrastructure wins out," said Idetic's Alvelda.
The company started in 1999 as a provider of C++ software for optimizing delivery of video over cellular, but carriers were focused only on text data at the time. "So we set off to create the problem we had solved by delivering streaming broadcast video," said Alvelda, who hired Hollywood executives to strike content deals and put the company in the services business.
Quality and capacity are the twin Achilles' heels for overlay services like MobiTV. It started broadcasting at just 2 frames/s. It gets up to 15 frames/s on today's top phones but needs networks to upgrade to 3G technology to approach the 25-frame/s rates of DVB-H and FLO.
The one-to-one switched nature of the cellular network also puts a capacity limit on overlay services such as MobiTV. The service will scale to handle 20 million subscribers nationwide, Alvelda said, but if mobile TV goes mass-market, it will require a separate multicast network in cities.
In the end, carriers think they will need coordinated video capabilities linking their existing cellular and new multicast TV nets. But their first step is gauging real demand for phones that combine links to broadcast and cellular nets.
British carrier mmO2 plc is starting a trial this month that offers 16 channels over DVB-H to 350 users in Oxford, U.K. The trial runs through February, but "we'll have a good idea of demand by the end of October," said R&D vice president Mike Short.
Nortel Demonstrates Wireless Broadband 'Triple Play' Solution; Technology Designed to Deliver Simultaneous Voice, Video, Data 'Anytime, Anywhere'
3G CDMA Americas Congress 2005
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050912005...
MIAMI--(BUSINESS WIRE)--Sept. 12, 2005--Wireless service providers and their customers will soon be able to benefit from simultaneous delivery of voice, video and data virtually 'anytime, anywhere,' leveraging technology developed by Nortel (NYSE:NT)(TSX:NT). This service bundling is designed not only to help create a new business model for wireless operators, but also to position them to increase revenue potential and enhance the subscriber experience.
Nortel plans to demonstrate real time applications and its 'triple play' solution over a live CDMA2000 1xEV-DO Rev. A network at the 3G CDMA Americas Congress, September 12-14, 2005 (Room G, Miami Convention Center).
The ability to deliver simultaneous broadband data, VoIP and IPTV media services over a single EV-DO connection is another step in Nortel's plan to position CDMA operators to lead the shift to a converged business model.
"Today, people expect wireless services to be as fast, reliable and secure as their wireline connections," said Richard Lowe, president, CDMA, Nortel. "Nortel's DO Rev. A and IMS/MMD solutions will help make tomorrow's service aware networks more intelligent, and assist CDMA operators in increasing profit potential by creating new business models and service bundling opportunities to enhance the subscriber experience."
Nortel's DO Rev. A and IMS/MMD solution benefits include an open design to provide personalized services for each user; options for increasing revenue through innovative bundling of voice, video and data services; and higher network transmission speeds with lower latency to ensure the highest quality user experiences for gaming, music, VoIP, PTx (Push to Talk, Push to See, Push to Video), video telephony, and broadcast/multicast services.
In August 2005, Nortel and Airvana completed live 1xEV-DO Rev. A calls at Airvana's lab in Chelmsford, Mass. using test handsets provided by QUALCOMM. The calls reached peak download rates of 3.1 Mbps and peak upload rates of 1.8 Mbps -- approximately 12 times faster than available on today's commercial DO Rev. 0 networks. The test calls demonstrated average round-trip delays below 40 milliseconds, which is approximately two times faster than DO Rev. 0.
"We are excited to work with Nortel and be at the forefront of delivering 1xEV-DO Rev. A to market," said Randy Battat, chief executive officer, Airvana.
Nortel recently demonstrated live video streaming to an EV-DO enabled PDA at 25 frames per second, equivalent to the TV experience at home. This was accomplished in Telefonica Moviles commercial EV-DO network in Guatemala City, Guatemala in collaboration with SmartVideo Technologies, a leading provider of live and on-demand IPTV services.
"It is gratifying to have worked with Nortel on this exciting project," said Richard E. Bennett, Jr., president and chief executive officer, SmartVideo (www.smartvideo.com). "We are also working with Nortel on an interoperability testing program to enable delivery of advanced video services to subscribers."
"Our BroadbandAccess laptop service for business customers and V CAST consumer multimedia service are market-leading, thanks to support from EV-DO network infrastructure providers such as Nortel," said Bill Stone, executive director, network strategy, Verizon Wireless. "We will stay at the forefront of the 3G world by continuing to work with Nortel to attain the added benefits Rev. A will give the award-winning Verizon Wireless network."
In March 2005, Nortel announced plans to trial Rev. A with Verizon Wireless in 2006. Nortel's Rev. A technology is expected to be commercially available in 2006. Nortel supplies EV-DO equipment to 12 of the 21 operators across the globe currently offering commercial EV-DO service, including Verizon Wireless in the United States, VIVO in Brazil, Pelephone in Israel and Telstra in Australia. Nortel also provided EV-DO equipment to Eurotel for the first commercial 450 MHz EV-DO service in Eastern Europe. With its CDMA equipment designed to support 1xEV-DO through modular upgrades to existing hardware, Nortel re-uses existing base station equipment to help operators reduce or eliminate the need for costly hardware replacements.
MMD is a standard architecture designed by the 3rd Generation Partnership Project2 (3GPP2) to enable convergence of data, voice, messaging and multimedia technology over an IP-based common core network based on SIP. MMD will enable operators to cost-effectively deliver VoIP and multimedia services across mobile, wireline and converged networks.
Nortel is an industry innovator and at the forefront of all broadband access technologies, including wide area cellular, wireline and wireless LAN. Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions, as well as edge and core network solutions for IP, ATM and optical transport.
About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.
Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;
cautious or reduced spending by Nortel's customers; increased consolidation among Nortel's customers and the loss of customers in certain markets; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel's supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; any undetected product defects, errors or failures; and the future success of Nortel's strategic alliances.
For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).
Pre-WiMAX Trial in Manhattan Next Year
http://www.cellular-news.com/story/14015.php
Adaptix, a provider of software defined, all-IP Orthogonal Frequency Division Multiple Access (OFDMA) wireless mobile broadband access technologies, and the NY3G Partnership, a Broadband Radio Services (BRS) spectrum licensee in New York City, have jointly announced a trial of Adaptix' line of broadband fixed and mobile OFDMA/TDD pre-WiMAX systems. The trial, to commence in early 2006, will be deployed over several locations on the island of Manhattan.
"As the largest market in the U.S., New York City offers the opportunity for Adaptix and NY3G to show the robustness of the OFDMA/TDD platform in a challenging environment for any wireless technology," said Vern Fotheringham, president and CEO of Adaptix. "Now fixed and mobile multi-megabit applications such as Voice over IP, data downloads and transfers, full-length movies and music downloads and multiplayer video games, can finally fulfill the promise of a truly connected Internet, whenever and wherever."
Adaptix recently demonstrated mobile WiMAX capabilities in its GMC Yukon Denali at the WiMAX Forum event on July 15, where it simultaneously received mobile Voice over IP calls, played video content such as feature-length movies and transferred large files, at throughput of up to 2.5 Mbps traveling at vehicular speeds through the coverage area. The technology is based on the forthcoming 802.16e wireless standard, expected to be ratified by the WiMAX Forum and Institute of Electrical and Electronics Engineers (IEEE) later this year.
"This trial commences at a very exciting time in the evolution of mobile broadband wireless," said Bradley Holmes, chief operating officer of NY3G. "NY3G's spectrum is capable of providing a variety of New York City-wide broadband services to businesses, residents, public safety organizations, community groups and schools. The scalability, flexibility and resource efficiency of the Adaptix platform appear to be an ideal fit for our deployment strategy."
Analyst Handicaps WiMAX Market, Picks Early Leaders
By Mark Hachman
http://www.extremewimax.com/article/Analyst+Handicaps+WiMAX+Market+Picks+Early+Leaders/159790_1.aspx
September 9, 2005Forward Concepts, known for their expertise in the DSP space, has entered the WiMAX forecasting market with a report predicting that the technology will be worth $2 billion in 2009.
Since the technology is still in its nascent state, the firm predicts that WiMAX chip revenues will total just $5.4 million this year. Still, Forward Concepts also predicted that traditional Wi-Fi WLAN products would generate $5.2 billion in 2005 sales alone, evidence that the WiMAX market still has a ways to mature.
While some analysts have wondered whether WiMAX will end up competing with HSDPA and other next-generation cellular technologies, Forward Concepts analyst Carter Horney has taken the opposing view.
"We view WiMAX as complementary to both Wi-Fi and 3G cellular," he said in a statement. "Fixed 802.16d systems can provide backbones for Wi-Fi hotspots where DSL or cable is unavailable or impractical. When emerging 802.16e provides a mobility WiMAX capability, it will augment the Wi-Fi infrastructure that will remain dominant for several years."
Since the technology is still rolling out, Forward Concepts analysts were reluctant to pick the market leaders. All of the chip vendors are still sampling, milling about in the paddock before the WiMAX race begins.
However, "the PHY/MAC chip leaders on the CPE (client) side of the current 'fixed' point-to-multipoint market, defined by IEEE 802.16-2004 (but popularly known as 802.11d) are clearly Intel and Fujitsu Microelectronics," Forward Concepts principal analyst Will Strauss wrote in an email. "However, Canadian Wavesat and French Sequans are very aggressive and probably next in line. Of course, they are all at the sampling stage."
"On the base station side, UK-based picoChip is probably out front with their programmable picoArray chip, which they claim can morph from today's 802.11d (point-to-multipoint) standard to the future 802.11e (mobility) standard simply through software changes," Strauss added. "They claim more than a dozen design-ins at present. It was picoChip's product in the base station that Intel demonstrated their CPE chip (code named "Rosedale") with. Altera claims to have FPGA design-ins in WiMAX base stations, too, as chronicled in the last paragraph of the writeup. Xilinx is probably in the running, too."
"I fully expect Texas Instruments and Qualcomm, among others, to enter this market, too, aiming mostly at the high-volume CPE side of the future mobility WiMAX (802.16e) market, which will be much bigger than the 16d market," Strauss noted.,
Verizon Slogs Away In Volatile Sector
September 11, 2005
http://www.courant.com/business/hc-ymleckey0911.artsep11,0,3174603.story?coll=hc-headlines-business
Q. I own stock in Verizon Communications Inc. that I have been watching go down almost every day for the past year. I wish I had sold it and put the money into bank certificates of deposit. What do you think about Verizon's future? I feel like I've waited too long now.
A. Telecommunications is exciting, but volatile.
Verizon Communications (VZ) is long on vision, strategy and customers, but must navigate fierce rivalry, rapidly changing technologies and significant debt.
Shares are down 16 percent this year, following a gain of more than 15 percent last year.
This telecom giant recently warned that it might reduce the $8.5 billion it had agreed to pay for MCI Inc. because of that company's large liabilities. MCI shareholders vote Oct. 6 on that offer, chosen over a higher bid from Qwest Communications International Inc.
In its second quarter, Verizon's net income rose 17 percent, including proceeds from the sale of its Hawaiian wireline and directory operations, as well as strong results from Verizon Wireless. But that profit was slightly below analysts' forecasts. Wireless is booming, but fixed lines are not.
Verizon Wireless, a 55 percent-owned joint venture with Britain's Vodafone Group PLC, added 1.9 million subscribers in the second quarter. That compares with a 1.07 million-subscriber gain by Cingular Wireless and 550,000 by Nextel Communications Inc. Of concern, however, are the costly price wars in wireless broadband services.
Meanwhile, in the wake of Hurricane Katrina, crews from Verizon Wireless have worked around the clock on repairs to damaged New Orleans and Gulf Coast wireless service.
The local fixed-line phone service to nearly one-third of the U.S. population is provided by Verizon, primarily in the Northeast. Although Verizon is upgrading this technology, many customers continue to replace traditional phone lines with wireless and data services or switch carriers.
Amid this tumult, the consensus analyst opinion on shares of Verizon is a "hold," according to Thomson Financial.
A significant concern is the fact that Verizon has one of the industry's largest debt loads, at $41.8 billion. It has increased its 2005 capital spending budget to $15.3 billion from $13.3 billion in 2004 to expand its wireless network.
Earnings are expected to rise 0.8 percent this year, vs. a 17 percent gain predicted for the domestic telecommunications services industry.
Q. My shares of Fidelity Growth Co. have done fairly well, and I'm considering adding to my holdings. What is your opinion of this fund?
A. Consider it big and beautiful. This aggressive fund sticks with large growth stocks and performs best in market environments in which traditional growth segments, such as health care and technology, dominate.
That has not been the case for a while. But because growth stocks are the Fidelity fund family's forte, and Steven Wymer is one of its best managers, this is a solid long-term investment rather than a short-term bet.
The $25 billion Fidelity Growth Company (FDGRX) gained about 5 percent so far this year. Its three-year annualized return of 17 percent puts it in the top 4 percent of its peers.
"I think large-cap stocks are coming back, but it might not happen until long-term interest rates go up," said Jack Bowers, editor of the independent Fidelity Monitor newsletter (www.fidelitymonitor.com) in Rocklin, Calif. "Smaller companies remain profitable buyout targets because rates are so low," he said.
Bowers noted that during the past decade Fidelity Growth Co. outperformed more than 80 percent of its peers. Wymer, in charge since 1997, adds turnaround plays and specialized areas, such as biotech, to more traditional selections. Although a large Fidelity analyst team provides skilled professional support, growth investments always carry some risk.
Health care and hardware each account for more than one-fourth of the portfolio. Other significant concentrations are business services and industrial materials. Top holdings were recently Google, Network Appliance, Apple Computer, Microsoft, Monsanto, Pfizer and Qualcomm.
This "no-load" (no sales charge) fund requires a $2,500 minimum initial investment. Its annual expense ratio is 0.82 percent.
Fidelity Management & Research, adviser to the Fidelity funds, was not implicated in the market-timing or late-trading scandals. But regulators have investigated gifts that its stock traders allegedly received from brokers. After conducting its own investigation, the firm disciplined 14 traders, and two traders left.
Andrew Leckey is a Tribune Media Services columnist. E-mail him at yourmoney@tribune.com.
Product: IBC 2005 :: Mobile TV War Looms
Author: Bob Crabtree
Date: 11th September 2005
Sample Provider:
http://www.hexus.net/content/reviews/review.php?dXJsX3Jldmlld19JRD0xNTgw
A three-way format war is looming in Europe over the technology used to deliver TV programmes, movies and other complex content to mobile phones – a market that some pundits estimate will be worth hundreds of billions of dollars a year worldwide.
Contenders include two proprietary systems claimed to be relatively cheap to implement. One is MediaFLO from Qualcomm, which is promising a full service in US cities by October 2006. The other is T-DMB (Terrestrial Digital Multimedia Broadcasting), supported by LG and Samsung and backed by the Korean government.
However, the strong favourite is DVB-H - an internationally accepted open system for handhelds that is backwardly compatible with current European digital broadcast standards. DVB-H is backed by the Digital Video Broadcasting project, a consortium with around 300 members that oversees European digital broadcasting standards.
The DVB-H system – which is being pioneered strongly by German mobile phone operators, and is supported by Microsoft - is making a big splash at IBC in Amsterdam. There are displays by over 30 companies and the IBC conference devoted Saturday - one of its five days - entirely to mobile applications.
Germany’s football league is due to start DVB-H pilot schemes for a mobile football service and these are expected to lead to a much wider service available for next year’s football world cup, taking place in Germany from June next year.
However, it’s possible that there will be no single winner in this format war. The different systems have their own advantages and disadvantages and makers of telephone handsets could produce models able to receive more than one TV service.
Dual-service phones will be available in Korea where there will be competition between the forthcoming T-DMB service (created by the government agency ETRI) and the satellite-based S-DMB, which uses technology created largely by Toshiba and is already undergoing trials involving 20,000 users.
The terrestrial version should be cheaper and easier to implement and the service will be free – supported largely by advertisements, presumably. But T-DMB is a local service, rather than being nationwide like the chargeable S-DMB satellite service, with reception not necessarily available outside large cities.
Intel feeds off spoils as Texas Instruments and Qualcomm do battle over 3G chips
September 11, 2005
http://www.busrep.co.za/index.php?fArticleId=2871827
New York - Christophe Jouin won't take his staff for a working lunch to any restaurant near his suburban San Diego office. His enemies could be sitting at the next table.
Jouin is the ranking manager at the 200-person West Coast outpost of Dallas-based Texas Instruments. The firm's semiconductors run more than half of the world's cellphones. His closest rival, Qualcomm, has headquarters around the corner.
The battle between the two biggest makers of cellphone chips is intensifying as phone sellers and service providers roll out the next generation of handsets, and try to persuade consumers to cough up more than $200 (R1 250) for them.
In the works for almost a decade, third generation (3G) phones use double or triple the number of chips found in current models, providing a potential bonanza for semiconductor firms. Getting the phones right may translate to a $40 billion market by 2009, Boston-based Yankee Group Research predicts.
Investors are betting Texas Instruments can parlay its lead in so-called 2G and 2.5G models to dominate the new market. The company gets over $1 billion in annual chip sales, about 10 percent of its revenue, from Nokia, the world's biggest handset maker.
Texas Instruments' shares have surged 32 percent this year, while Qualcomm's have fallen 5.7 percent after outpacing its rival in 2004. This year Qualcomm has twice slashed its forecast for shipments of the main type of 3G phones, WCDMA, and now predicts manufacturers will ship 45 million of the phones globally this year, down from a January forecast of 55 million.
Qualcomm chief executive Paul Jacobs has said he wants to control half of the market. Yet he hasn't managed to wrap up deals for 3G chips with either Nokia or second-biggest phone maker Motorola, says Cody Acree, an analyst at Legg Mason Wood Walker.
Both Texas Instruments and Qualcomm may stall as they wait for customers to determine the magic combination of bells and whistles that will entice them to trade up to 3G models. Earlier this year, Nokia tracked what customers did with their 3G phones. The callers used an average of 15 separate applications a week and downloaded five new programs a month, but no feature emerged as a clear favourite.
A killer application may surprise even seasoned observers. Motorola and others failed to predict the popularity of built-in cameras in 2003. And users unexpectedly embraced ring tones, downloading $217 million worth last year in the US, Jupiter research says.
US carriers are wary of rushing into 3G after their European counterparts got burned, paying about $100 billion for fast-data licences. Instead of ushering in a new telephone age, the spending by the UK's Vodafone Group, Germany's Deutsche Telekom and Telecom Italia Mobile peaked as the internet bubble burst in 2000.
Vodafone and others delayed services such as video calls, sending shares plunging.
This time around, companies are asking when, not if, 3G will take off. Customers have got used to camera phones and games, and doing anything more requires faster speeds.
With 3G, Texas Instruments and Qualcomm are colliding like never before, as they compete to deliver the exact same type of chip for the same phone type. The two sued each other in 2003 over a patent-sharing agreement struck in 2000. Qualcomm alleged that Texas Instruments violated the terms by disclosing that it didn't have to pay royalties on some Qualcomm patents.
Texas Instruments won that case in the Delaware supreme court in June.
Now chief executive Rich Templeton is counting on 3G chips for an increasing percentage of revenue just as Qualcomm is going after his semiconductor customers.
Research firm IDC says that by 2009, WCDMA chips will run 26 percent of the 932 million handsets sold globally compared with 3.2 percent of last year's 692 million. In 2004, Texas Instruments had 31 percent of the WCDMA chip market versus Qualcomm's 28 percent.
Last year, Texas Instruments' 3G products delivered about $600 million in sales, roughly 15 percent of the revenue from cellphone-based chips. During the first half of this year, it boosted that proportion to 20 percent.
Qualcomm's chip division generated $3.09 billion in sales during fiscal 2004, or 63 percent of total revenue.
Intel, the biggest chip maker, may emerge as the spoiler in the 3G wars. The California-based firm is jumping into cellphone chips as growth slows in its main market, personal computer (PC) semiconductors, in which it has an 80 percent market share.
To counter the drop-off, Intel is pushing a new 3G processor called Hermon, which puts the communications capabilities and the software that runs a cellphone's video, sound or games on a single chip. Chief executive Paul Otellini says Intel has an advantage because it has decades of experience with chips that run software on PCs.
Intel promises that customers will soon announce that they'll use Hermon.
Templeton has weathered his share of corporate upheaval. In the 1990s, he led Texas Instruments as it pared its defence and consumer electronics businesses and made semiconductors its primary focus. He bet on a digital signal processing chip that has become the main engine of cellphones. He helped persuade Nokia to build phones that used the new chip as the Finnish company moved to digital technology.
After striking the deal that made Nokia the biggest customer of Texas Instruments, the company sold, or closed, a dozen consumer and defence units, betting that none would deliver the return of the chips.
Cellphone chips now account for about 25 percent of Texas Instruments' total revenue.
For the 3G hopefuls to win in the new market, they'll have to persuade investors that this time around 3G is coming, even though it's not yet the prevailing standard outside South Korea and Japan. - Bloomberg
All Hail OFDMA!
09.09.05
http://www.unstrung.com/document.asp?doc_id=80357&WT.svl=news2_1
OFDMA (orthogonal frequency division multiple access) is emerging as the clear choice for the next-generation radio interface in mobile wireless networks, said Mick Reeve, group technology officer at BT Group plc (NYSE: BT - message board; London: BTA), in his keynote at Light Reading’s Future of Telecom Europe event in London yesterday.
Reeve said that “almost everyone agrees” OFDMA will be the next major evolution in mobile wireless technology, but he noted there are unanswered questions about how, when, and by whom it will be implemented.
“Mobile guys are saying it’s just an enhancement to 3G, and WiMax guys are saying it’s WiMax,” said Reeve. “We’ve seen agreement on technology, but there’s a lack of clarity on standards and spectrum.”
OFDM works by dividing a given spectrum block into a number of sub-channels, each of which is individually modulated and then transmitted orthogonally to minimize interference with one another.
The result is faster, more robust radio links than can be achieved with alternative modulation/multiplexing schemes. It is often claimed, for example, that OFDM is more efficient, in terms of bits per Hertz, than CDMA and WCDMA (wideband code division multiple access) technology used in 3G systems, and/or delivers better performance in non-line-of-sight urban environments due to better resistance to multipath interference.
For these reasons OFDM has been adopted as the radio interface for 802.11g and 802.11a (but not 802.11b), for digital TV broadcast systems such as Digital Video Broadcast (DVB), and for Fixed WiMax systems based on the 802.16-2004 standards. Now the adoption of OFDM in more demanding cellular systems is starting to have an impact on the mobile infrastructure market.
Specifically, the demands of mobility and two-way communications are pushing the industry towards a variant of OFDM called OFDMA , which can assign a subset of sub-carriers to individual users. This is the radio interface being adopted by Mobile WiMax, via the upcoming 802.16e specifications, and being implemented in the Korean WiBro equipment.
For non-line-of-sight applications, OFDMA is now considered superior to the 256-carrier OFDM specified by the Fixed WiMax 802.16-2004 standards to the extent that some in the industry (mainly those not buried under a mountain of time and money sunk into Fixed WiMax) believe that fixed wireless broadband access will, in fact, become just an application of Mobile WiMax, due to its superior physical layer and anticipated higher unit volumes.
The OFDM physical layer is also being developed by mobile system providers currently outside the WiMax sphere. At this point, terminology gets seriously confusing and the stakes get even higher.
Qualcomm Inc.’s (Nasdaq: QCOM - message board) recent $600 million acquisition of Flarion Technologies for its “FLASH-OFDM” technology was widely seen as public recognition by Qualcomm that its CDMA hegemony is under long-term threat from newer OFDMA systems. Interestingly, in its announcement of the acquisition, Qualcomm employed OFDMA terminology, even though Flarion had not previously used the term publicly.
Meanwhile OFDMA pioneers, such as Adaptix Inc., are working to differentiate themselves by presenting their technology as OFDMA/TDD -- which works by assigning sub channels to individual users dynamically in time. (See Adaptix, NY3G Team Up ).
There is also a widespread expectation that OFDMA will be adopted by the 3rd Generation Partnership Project (3GPP) through its Long Term Evolution (3G LTE) working group, also referred to as “Super 3G.” The difference here is that it’s likely to be several years until anything much happens. This is because the world’s 3G systems providers and operators have more pressing issues to deal with, including implementation of HSPA (High Speed Packet Access) and EV-DO Rev A radio interface upgrades.
— Gabriel Brown, Chief Analyst, Unstrung Insider