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Massive Mobile Multi-Player Game Rollout Announced
WWJ Viewpoint :: Japan Market
Posted on Tuesday, April 26 @ 21:15:45 JST
Gail Nakada, 26 April 2005
http://www.wirelesswatch.jp/modules.php?name=News&file=article&sid=1297
DoCoMo ruled 2004 with their 3G 900i series phones and exclusive Final Fantasy VII spin off game 'Before Crisis' but spring 2005 belongs to KDDI. Japan's leading 3G carrier has just whipped out a whole new posse of BREW-based mobile multiplayer games for their WIN CDMA 1X 3G handsets: Bandai's Gundam (Kidousenshi Gundam 3D Meguri Ai Sora Hen); Bomberman 2 from Hudson; Armored Core; Ace Combat by Namco; Sega Rally; Street Fighter II and more, for a complete list scroll down todays Japanese press release .
In February KDDI launched EZ Game Street a new gaming platform powered by Square Enix, the user-friendly image based interface and landscape of 350 games is set to become even more engaging with this boulevard of multiplayer options powered by new fixed data rates.
Thales extends its Mobile TV systems capability to support QUALCOMM's FLO Technology
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050426005....
SOUTHWICK, Mass.--(BUSINESS WIRE)--April 26, 2005--At NAB 2005, following the launch of its End to End Mobile TV Solution, Thales is pleased to announce the addition of the support of QUALCOMM 's FLO technology. Thales Mobile TV global solution is based on leading edge and already widely adopted systems including:
-- The SmartCast Mobility Video Head end platform
-- The SmartVision Mobility Video Service platform
-- Broadcasting Transmitters Affinity / Optimum / Ultimate for delivery in various bands
Thales showcased mobile TV during the show with comprehensive live demos establishing compatibility with most of mobile TV standards and receiving terminals as well as Broadcasting frequency bands (VHF/UHF/L- band).
Thales and QUALCOMM entered into a co-development program to combine Thales' digital exciter and signal correction experience with QUALCOMM's FLO modulation technology to create a FLO compatible exciter. The ULTIMATE transmitter with embedded FLO exciter will provide an extremely reliable solution for distribution of high quality streaming video and audio content to consumer's handheld devices.
"QUALCOMM is pleased that Thales recognizes the market potential of FLO and has taken positive steps to support FLO technology and MediaFLO," said Jeff Lorbeck, vice president and general manager of QUALCOMM's MediaFLO USA, Inc. subsidiary.
"MediaFLO is evidence of QUALCOMM's continuing innovation in the wireless space and Thales is very pleased with the on-going engineering program with QUALCOMM," states Roger McGarrahan, CEO of Thales Broadcast & Multimedia. "Thales' ULTIMATE UHF solid-state transmitter is a field proven architecture and is a natural fit for any service provider planning to deploy a MediaFLO network."
About FLO technology
The FLO technology was designed specifically for a mobile multimedia environment and exhibits performance characteristics suited ideally for use on cellular handsets. It uses the latest advances in coding and interleaving to achieve the highest-quality reception at all times, both for real-time content streaming and other data services. FLO technology will ensure robust mobile performance and high capacity without compromising power consumption. The technology also reduces the network cost of delivering multimedia content by dramatically decreasing the number of transmitters needed to be deployed. In addition, FLO technology-based multimedia multicasting will complement wireless operators' cellular network data and voice services, delivering content to the same cellular handsets used on these 3G networks.
About ULTIMATE
Thales' ULTIMATE solid-state digital transmitters feature LDMOS broadband amplifiers and digital exciters with Emmy award winning Digital Adaptive Precorrection (DAP), which features on-air automatic alignment for peak transmitter performance. The ULTIMATE liquid-cooled transmitter has achieved great market acceptance, since its introduction, with a customer base that includes numerous references with major US broadcasters and operational networks around the world in various systems and cooling configurations.
About Thales
Thales is a leading international electronics and systems group, serving defence, aerospace, security and services markets worldwide. The Group employs 60,000 people throughout the world and generated revenues of 10.3 billion euros in 2004. The Thales Group's broadcast & multimedia business designs, develops, manufactures and markets equipment, systems and solutions in the fields of terrestrial transmission (radio and TV), digital video processing and multimedia distribution for broadcasting, cable TV, satellite and telecommunication service providers worldwide. Thales' Broadcast & Multimedia systems are deployed in 170 countries.
QCOM Provides Global QPoint(TM) License to ZTE Corporation
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/04-25-2005/0003484504&...
BEIJING, April 25 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
(Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access
(CDMA) digital wireless technology, and ZTE Corporation, a leading
manufacturer of telecommunications equipment in China, today announced ZTE and
a QUALCOMM subsidiary have entered into a global QPoint license and
distribution agreement. Under the terms of the agreement, ZTE is licensed to
promote and sell location positioning systems using QUALCOMM's QPoint location
server software to CDMA2000(R) 1X and WCDMA (UMTS) network operators on a
global basis. ZTE will use the QPoint solution together with QUALCOMM's
client-based gpsOne(R) technology to provide Assisted-GPS (A-GPS)-enabled
Location Based Services (LBS) worldwide.
"ZTE continues to demonstrate its ambition and leadership in global 3G
CDMA markets," said Jing Wang, senior vice president of QUALCOMM and chairman
of QUALCOMM Greater China. "We are extremely pleased to be working with ZTE
as close collaborators and look forward to expanding our business cooperation
with ZTE in the unfolding age of global 3G CDMA to bring QUALCOMM's position
location technology to 3G operators around the world."
"The agreement further extends the close cooperation between ZTE and
QUALCOMM," said Dr. Zhao Xianming, vice president of ZTE. "Working together
enables us to promote location-based services leveraging QUALCOMM's QPoint and
gpsOne technologies with CDMA2000 1X and WCDMA solutions, which we believe
will extend our competitive edge on a global level."
In China, QUALCOMM's A-GPS technology-based services are available
nationwide. China Unicom is providing multiple location-based services using
the QPoint solution and gpsOne technology enabled handsets, which demonstrates
the value differentiation and advantage of the CDMA network and QUALCOMM's
A-GPS technology. ZTE started cooperation with QUALCOMM on A-GPS in 2003 and
has introduced multiple solutions and equipment including Mobile Positioning
Center, Position Determination Entity, Geographic Information System
middleware, handsets, the CDMA2000 1X data card and CDMA2000 1X wireless
module.
The execution of the global QPoint license and distribution agreement
extends a long-term association between QUALCOMM and ZTE. ZTE was one of the
first major Chinese telecommunications equipment manufacturers to enter into a
patent license agreement with QUALCOMM for CDMA and is a commercial patent
licensee for WCDMA. ZTE's product portfolio features handsets based on
QUALCOMM's proven CDMA2000 1X solutions, including the Mobile Station
Modem(TM) (MSM(TM)) MSM6000(TM) and the MSM6025(TM) chipsets. Recently, ZTE
selected QUALCOMM's MSM6250(TM) MSM chipset and system software for the design
of 3G handsets for the WCDMA market. In 2002 and 2003, QUALCOMM was honored
with ZTE's Best Global Partner award.
QUALCOMM's gpsOne technology, integrated into most of QUALCOMM's chipsets,
is a low-cost, high-accuracy A-GPS solution that operates in MS-assisted
(A-GPS position calculated in the network), MS-based (A-GPS position
calculated in the handset), and standalone/autonomous modes on all major air
interfaces, enabling CDMA2000 1X, 1xEV-DO, WCDMA, HSDPA, GSM, GPRS, and EDGE
operators to take advantage of QUALCOMM's integrated gpsOne solutions. To
date, more than 100 million handsets enabled by QUALCOMM's gpsOne technology
are in commercial use, making gpsOne the most widely deployed GPS technology
in the world. The gpsOne solution is part of QUALCOMM's Launchpad suite of
advanced multimedia, connectivity, position location, user interface and
removable storage functionality.
QPoint is QUALCOMM's location services software and set of accompanying
tools making up the core backend/infrastructure element needed to enable
location services to be deployed. QUALCOMM works with system integrators to
offer QPoint to operators. QUALCOMM's QPoint and gpsOne solutions provide the
most complete, integrated mass-market location based services solution
available today.
ZTE Corporation is China's largest listed telecommunication equipment
manufacturer and wireless solutions provider. Founded in 1985, ZTE was listed
on the Shenzhen Stock Exchange in 1997 and on the Main Board of The Stock
Exchange in Hong Kong in 2004. ZTE recorded contract sales of approximately
US$4.11 billion in 2004. ZTE is a pioneer of China's telecommunications
equipment manufacturing industry and a comprehensive provider of
telecommunications equipment, mobile terminals and services.
QUALCOMM Incorporated (http://www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and services
based on the Company's CDMA digital technology. Headquartered in San Diego,
California, QUALCOMM is included in the S&P 500 Index and is a 2004 FORTUNE
500(R) company traded on The Nasdaq Stock Market(R) 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 Company's ability to successfully design and have
manufactured significant quantities of CDMA components on a timely and
profitable basis, the extent and speed to which CDMA is 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 gpsOne are registered trademarks of QUALCOMM Incorporated.
QPoint, MSM6000, MSM6025, MSM6250, MSM and Mobile Station Modem are 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:
Mingjuan Hou, QUALCOMM China
Phone: 86-10-8529-6529 x 217
Email: mhou@qualcomm.com
or
Emily Gin, Corporate Communications
Phone: 1-858-651-4084
Email: corpcomm@qualcomm.com
or
Bill Davidson, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
SOURCE QUALCOMM Incorporated
Web Site: http://www.qualcomm.com
Top Global introduce the world's first dual slot EVDO and UMTS Gateway
April 23, 2005
http://www.3gnewsroom.com/3g_news/apr_05/news_5780.shtml
Top Global, a wireless convergence solution provider, announced the World's First Dual Slot Enterprise Class MobileBridge solutions that link 3G mobile and Wi-Fi networks. Top Global's solution, called MobileBridge, serves as a gateway/router that links 3G and Wi-Fi networks, enabling enterprises the flexibility and convenience of broadband wireless internet including both voice and data services in mobile and remote environments. The Dual Slot Universal MobileBridge utilizes Top Global's patented MultiLink load balancing technology to optimise the total effective throughput, and it also utilizes Top Global's proprietary AutoSwitch network redundancy software.
The Universal MobileBridge is a standard universal gateway that supports all EVDO data cards available in the USA including PC5220/AC580, V620 and KPC650. Enterprises continue to demand for higher data throughput and for redundancy in wireless networks. With the dual slot design, we effective solve two problems at the same time. For example, enterprise customers in the USA can now use the
Mobilebridge with both EVDO and UMTS/HSDPA networks at the same time. They not only get higher throughput but also have an automatic back up solution in case one link is down. In Europe however, customers can get two UMTS links from two independent service providers to enjoy the same benefits.
The flexible systems architecture of the Universal MobileBridge supports any of the combinations of EVDO, CDMA 1x, EDGE, and UMTS today and can migrate to support HSDPA and EVDO Rel.A standards with firmware upgrade in the near future.
10 White-Hot Technologies
A survival guide to business network planning
With 10 white-hot technologies sizzling away, the heat is clearly on service providers when it comes to enhancing and transitioning their current infrastructures to form the network of the future. Drawing critical input, analysis and perspective from the industry's top technology minds, we've assembled a survival guide for network operators looking beyond just hanging on-to finding a path to profitability.
The List:
1.OTA
2. Copper Pair Bonding
3. IMS
4. Intelligent Demarcs
5. PWE3/Dry Martini
6. OFDM
7. SIP
8. Web Services
9. GigE
10. HSDPA
For detail, see link:
http://www.rednova.com/news/display/?id=146043&source=r_technology
Ericsson Net Surges 73% Rollout of 3G Services in Europe Buoys Sales
http://www.rednova.com/news/display/?id=146093&source=r_technology
Ericsson, the Swedish telecommunications equipment giant, reported a surge in profit on Friday, extending a recent run of positive news from the telecommunications industry and buoying European stock markets. The Stockholm-based company, the world's largest supplier of mobile phone networks, said that net income for the first quarter increased 73 percent to 4.64 billion kronor, or $661 million, from a year earlier. Sales were up 12 percent at 31.5 billion kronor, as Ericsson rolled out 3G services in Western Europe, and as demand for WCDMA, a high-speed transmission technology, rose in Eastern Europe and Turkey.
Market share increased 2 percent to 3 percent from a year ago, a sign that the company's strategy of closer partnering with its customers was working, said Carl-Henric Svanberg, the company's president and chief executive. Ericsson has also focused on cutting costs in recent quarters, particularly by eliminating jobs. These cuts helped to increase the company's gross profit margins from 44.7 percent a year ago to 48.5 percent in the first quarter of 2005, beating analysts expectations. "These guys are still the biggest player in the telecom equipment environment anywhere, and economies of scale are playing into their hands," said Robert Sellar, head of technology on the equities desk of Aberdeen Asset Management.
In recent years, investors and analysts predicted sales would drop steadily for well-established telecommunications equipment companies like Ericsson, as Chinese manufacturers took over the industry. But they failed to take into account the amount of spending that these companies' customers need to do to improve their existing networks to support 3G and other new technologies, Sellar said. Ericsson's news comes on the heels of unexpectedly strong reports from Nokia, the German business software company SAP and Motorola. The Ericsson report is also in sharp contrast to the company's outlook last October, when it warned that sales growth would be minimal through 2005. Despite the jump in first-quarter sales, Ericsson still forecasts "slight growth" for the full year.
Svanberg said, however, that he saw "encouraging signs of accelerated infrastructure investments in both China and the U.S."
Worldwide, five new WCDMA networks were started in the first quarter of 2005, bringing the total to 61, Ericsson said. The company is a supplier to 36 of these networks. Investors sent the company's stock up 4.33 percent to close at 21.7 kronor on the Stockholm Stock Exchange. The news contributed to modest gains in the FTSE and other European indexes.
Source: International Herald Tribune
Qualcomm's 802.11 Enlightenment
04.25.05
http://www.unstrung.com/document.asp?doc_id=72477
Qualcomm Inc. (Nasdaq: QCOM - message board) is finally warming up to 802.11, at least for some multimedia applications.
The cellular superstar is traditionally downbeat on pretty much any wireless technology that doesn't begin with a "C" and end in "DMA"; but it recently joined up with the TGn Sync group working on developing the new 108-Mbit/s high-speed WiFi standard, 802.11n (see Qualcomm Joins TGn Sync).
Paul Jacobs, the new boss at the big Q, shed a little light on Qualcomm's move towards 802.11, on the firm's second-quarter earnings call.
"The work we're doing will be increasingly important to allow phones to share multimedia content with other consumer devices," the CEO said on the call.
He didn't add much detail beyond that, but a high-speed, short-range transport mechanism has obvious appeal for Qualcomm, which is already a big proponent of video on phones. If -- as seems likely -- phones become all-singing, all dancing, digital audio and video players, then it will become increasingly necessary to transfer large files at speed among computers, home entertainment centers, and handsets.
Of course, the 802.11n specification process is somewhat stalled at the moment, because of continued strife among the vendors involved. But everything Unstrung has heard suggests that 802.11n products should start to trickle onto the market before the end of next year.
— Dan Jones, Site Editor, Unstrung
GSM 1X switches easily from GSM to CDMA
Zatni Arbi, Contributor, zatni@cbn.net.id
http://www.thejakartapost.com/detailfeatures.asp?fileid=20050425.S01
As we all expected many years ago, today we have both GSM and CDMA cellular phone operators. To use a GSM cellular phone, we need a SIM (Subscriber Identity Module) card. If we change cellular phones, all we have to do is take it out from the old one and insert it into the SIM slot in the other cellular phone device. The SIM card is actually a chip card that contains our cellular phone number, all the contact info that we have saved on it and some other information.
To use a CDMA cellular phone, we may also need a RUIM (Removable User Identity Module) card. CDMA operators such as Esia and Telkom Flexi will provide the RUIM card that we have to insert into the RUIM slot in our CDMA cellular phone.
In the past, we could also ask them to "inject" the phone number into the device itself, so no RUIM would be necessary. I have a CDMA phone that was given to me by Japan's KDDI during a trip there two years ago. As it does not support RUIM, the pretty cellular phone is now just a part of my collection.
Now, with our pockets already so full of electronic gadgets, we wonder if there is any way we can use both SIM and RUIM in one single cellular phone. Keep in mind that, technically, the access method of GSM is different from that which CDMA uses. Besides, they use different frequency bands, too. Thus, designing a cellular phone that can access a GSM and a CDMA network at the same time would appear to be out of the question.
Dual-Mode Cellular phone
Qualcomm, the San Diego-based company that has been developing CDMA technology, has the solution. This company, which has also been making chips for CDMA devices, has developed what it calls the GSM 1x chip.
On the device side, the technology provides a solution that will allow engineers to design dual-mode handsets that can connect to either a CDMA or a GSM network with the help of an electronic switch. On the infrastructure side, the GSM 1x technology allows GSM operators to add advanced CDMA2000 capabilities on top of their network.
It means that subscribers can get a higher data capacity -- up to 2.4 Mbps -- over their GSM network and enjoy the CDMA2000 1x-EVDO services.
Of course, this is a controversial solution, especially with the 3G WCDMA, which is a pure GSM breed, gaining ground rapidly. Certainly, operators will have a difficult decision to make, namely, whether to go with 3G WCDMA or to implement GSM 1x.
Keep in mind, too, that the data capacity of a 3G WCDMA -- not the HSDPA -- is only 384 Kbps, far below the CDMA2000 1x. However, now that the HSDPA Phase 2 is reportedly providing a data rate of up to 14 Mbps, the GSM 1x may not seem so attractive any more.
Nonetheless, at least now with a minimal fuse you can switch a cell phone from GSM to CDMA if it has a GSM 1x chip. So, if you are traveling to South Korea or Japan, you no longer have to carry two cellular phones in your bag. Switch to CDMA when you are there, and switch back to GSM after you have returned.
Courtesy of Motorola, I was able to play around with their GSM 1x cell phone for a week. The A860 has two slots, a RUIM card slot and a SIM card slot. The latter is located inside the battery cover. We do not have to fill both slots to use the cellphone.
One thing to keep in mind is that, contrary to what most people think, you cannot use both the CDMA and the GSM service at the same time, you will have to switch to either of them.
There are a lot of things to like about the A860. Firstly, I had no complaint about the keypad, which was very easy to use and accurate. The overall clamshell design can be called a classic, and the screen is just great. Considering that it is actually two cellular phones in one, it was surprising small in my hand.
The audio is great, too. About the only complaint I have was that the battery life seemed to be a bit on the short side. I was able to use it only for 24 hours, and I sent and received only a dozen SMSes. However, this may have to do with the fact that the demo unit I was test driving had been used by several other journalists before, and they might not have recharged the battery properly.
Although it is a nice cellphone to have, the Motorola A860 was actually made for China Unicom. If you press a particular button, a message on the screen will read "This service is available only on China Unicom." Still, the A860 does represent a solution for those who have constantly have to switch between a CDMA and a GSM network -- or even between two GSM networks.
What's the best guess for the stock if it were valued like its peers?
Investors often come to believe that a stock is undervalued or overvalued compared to other stocks in its industrial group. To calculate an alternate target price for the current and next fiscal year based on those beliefs, investors can apply the average PE multiple for a company's industrial group to the average professional analyst's earnings estimate for the company in those periods.
Valuation using the industry's current multiple (P/E):
Fiscal Year Est. Price % Change
9/2005 $49.95 47.26%
9/2006 $63.78 88.02%
QUALCOMM INC current price: 33.92
Communication Equipment group current multiple (P/E): 44.60
QUALCOMM INC average 9/2005 analyst estimate: 1.12
QUALCOMM INC average 9/2006 analyst estimate: 1.43
Investors estimate the level of unanimity about a stock's prospects among analysts by calculating the range between the most optimistic and most pessimistic estimates.
Average number of analysts covering QUALCOMM INC : 21
QUALCOMM INC analysts' high/low spread: 26%
QUALCOMM INC analysts' confidence: Low
http://moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=qcom
What is your take on the following Data on Qualcomm:
advisor fyi alerts
Advisor FYI™ from MSN Money provides timely alerts to factors that may affect the value of your investments. Learn more about how Advisor FYI alerts can help keep you informed.
04/22/05 QCOM's P/E ratio well below industry average.
29.80
04/22/05 Institutional holdings of QCOM increased significantly.
72.20%
http://moneycentral.msn.com/detail/stock_quote?Symbol=QCOM&FYI=True#Alerts
Telecom sector looks beyond 3G, broadband Internet
http://www.koreaherald.co.kr/archives/result_contents.asp?id=200504220024&query=wcdma
In a technology-mad country where people use their mobile phones to pay credit-card bills, listen to music and watch television, delivering voice communications is no longer the focal point of competition in the telecom industry.
Telephone operators, Internet services providers and equipment vendors are looking beyond conventional third-generation mobile and broadband Internet services and seeking to deploy enhanced technologies that offer efficient integrations between voice, video and data transmissions.
Mobile television
Among the newly promoted technologies, mobile television service is gathering most interest. Mobile television services, dubbed digital multimedia broadcasting, are designed to beam digital television, audio and data to handheld devices via satellite or land-based television airwaves. Korean mobile-phone operators and television broadcasters are expecting commercial services during the second quarter.
According to a report by the state-run Electronics and Telecommunications Research Institute, the mobile television industry will generate 14.7 trillion won in services and equipment ($14.2 billion) through 2010 while creating about 160,000 jobs annually during the same period.
Land-based services are expected to attract more than 10 million customers by the year 2010 while satellite-based services are expected to have 4.3 million by that time, according to the institute.
The Ministry of Information and Communication allocated a license for satellite-based mobile television services to TU Media Corp., 30 percent owned by the country's largest mobile-phone carrier SK Telecom Co., in December last year.
TU Media, currently running trial operations, hopes to begin commercial services in May and plans to provide 14 video and 24 audio channels to customers for a monthly fixed rate of 13,000 won. The company will take around 25 percent of the service fees it shares with the country's three mobile operators - SK Telecom, KT Freetel Co. and LG Telecom Ltd.
The Korean Broadcasting Commission, the broadcast regulator, reversed its earlier decision Tuesday and allowed TU Media to air programs by local land-based television stations on their satellite network.
Last month, the Communication Ministry allocated six licenses for land-based mobile television services that are expected to go live in June. The country's three major land-based television stations - KBS, MBC and SBS - secured spots for the nascent market.
The three remaining spots saved for non-terrestrial broadcasters were allocated to consortiums led by cable news broadcaster YTN, radio broadcaster CBS and a group led by electronics equipment makers PSK Tech Inc., Homecast Co. and digital content developer Sigong Tech Co.
Industry watchers expect land-based mobile television services to have a larger audience than its rival standard, with its free services and better content.
However, finding a revenue model from land-based mobile television services for mobile operators is proving to be a challenge. Mobile operators KT Freetel and LG Telecom have been demanding the government allow them to charge customers for land-based mobile television services to cover their investment in marketing and building additional transmission facilities.
Industry watchers believe satellite-based mobile television can penetrate dense built-up areas and tunnels better than the land-based services, with TU Media already having installed more than 5,000 gap fillers nationwide to cover blanketed areas. The company said it will invest an additional 700 billion this year to upgrade their transmission infrastructure.
The aforementioned telecom operators say they will have to invest at least 200 billion won in transmission infrastructure to match TU Media's level of coverage nationwide.
Portable Internet
The wired and wireless sector is renewing their battle for supremacy on the local telecom market and the portable Internet, expected to go online next year, has been the focal point of competition.
The portable Internet, dubbed by Korean officials as WiBro for wireless broadband, is designed as a higher data-rate wireless broadband services that provides wider coverage than wireless LAN services and faster connections than third-generation mobile telephony.
In January, the Ministry of Information and Communication allocated three licenses for portable Internet services to fixed-line giant KT Corp., Hanarotelecom Inc. and mobile carrier SK Telecom.
The WiBro operators will be required to provide Internet access at a peak rate of 1 mps to wireless devices moving at speeds up to 70 kilometers per hour. The Ministry of Information and Communication allocated the 2.3Ghz band for portable Internet operations and approved the IEEE 802.16 standard as WiBro's base technology last year.
Telecom operators hope the portable Internet services will enable them to create more value-added services and market them to a larger audience.
The state-run Korea Information Strategy Development Institute predicts the portable Internet sector to generate 12.9 trillion won by 2010 and have more than 9.45 million customers in 2016.
The three operators are scheduling commercial launches next year.
KT, which controlled 93.8 percent of the fixed-line telephony market and 51 percent of the broadband Internet market in 2004, hopes the portable Internet will bridge its fixed-line dominance to the wireless sector.
The company announced last year that it will invest 18 trillion won ($16 billion) by 2010 to promote five new growth engines in next-generation mobile communications, home networking, Internet protocol-based television, Internet protocol-based business solutions and digital content development.
The former state fixed-line monopoly, which plans to start commercial services in April next year, will invest more than 1 trillion won over three years starting in 2006 to develop portable Internet services and hopes to expand its coverage to 84 cities nationwide by 2008.
SK Telecom, which had a 51.3 percent share of the mobile telephony market last year, is concentrating on developing differentiated services that do not overlap with its W-CDMA third-generation mobile telephony services. The company, starting commercial services in June next year and eyeing nationwide coverage in 2009, hopes its advanced experience in marketing mobile data services will give them an advantage in developing killer applications.
Hanarotelecom, which acquired No. 3 broadband operator Thrunet Co. earlier this year, hopes its expanded broadband customer pool can give them a stronger base to compete against the bigger rivals.
Hanarotelecom, runner-up to KT in the broadband market last year with a 23.1 percent share, plans to develop video-on-demand and Internet protocol-based television as its killer applications for the portable Internet services.
High-speed downlink
Although mobile television and portable Internet services are gathering most of the attention in the telecom sector, some industry watchers are now predicting high-speed downlink packet access, or HSDPA, will compete with both technologies and emerge as the dominant standard.
HSDPA, a new third-generation mobile telephony specification, is designed to deliver data at a peak rate of 14.4 mbps (megabytes per second), better than current third-generation W-CDMA networks that are designed to offer data rates of 2 mbps.
Electronics manufacturers Samsung Electronics Co. and LG Electronics Inc. are planning to provide HSDPA-enabled handsets to mobile carriers SK Telecom and KT Freetel Co. for their W-CDMA services that expands nationwide in the second half of the year.
"The deployment of HSDPA will have a 'tsunami-like' impact on the local mobile communication market, specifically in the future road map for third-generation technologies, development of killer applications, competitive relations with other technologies and the evolution of mobile phones," said La Juno, a researcher at the LG Economic Research Institute, predicting that a strong local market for HSDPA will emerge around the first half of next year.
Third-generation mobile telephony services such as W-CDMA or CDMA2000 1X EV-DO are designed to deliver data at speeds of 2 mbps or 2.4 mbps. However, the data rates are shared across other mobile phones within the base station's coverage area, leaving individual users with much slower connections of around 300 to 400 kilobytes per second.
HSDPA attempts to solve the problem by adding more bandwidth. The system would allow individuals to send or download data more quickly and at the same time free up bandwidth for other users.
Industry watchers predict HSDPA will deliver data at an average of 2 mbps to 3 mbps to individual users, closer to the connection speeds of conventional broadband Internet technologies such as digital subscriber lines and cables.
La expected the faster-than-expected deployment of HSDPA will enable the new technology to compete in the same market with other portable Internet technologies such as mobile television and WiBro, unlike earlier industry predictions that saw HSDPA as complimentary.
"With HSDPA being more than capable of providing mobile Internet and television services on its network, its clash with other next-generation technologies such as DMB and WiBro is inevitable. The competition will be focused on which can deliver the 'mobile triple play,' or the delivery of voice, video and data transmissions on handsets, more efficiently. In this area, HSDPA is clearly ahead of competition at this point," said La.
"To compete with HSDPA, DMB operators must utilize their advantage in content delivery and costs, while designing their network to be fully interoperable with current 2.5-generation and third-generation telephony networks. WiBro operators must strengthen voice-over-Internet protocol features and focus on delivering cheaper voice services," he said.
(thkim@heraldm.com)
By Kim Tong-hyung
no
2005.04.22
GSM Slowdown in first half, WCDMA Uptick in the second half
Market Pulse: Prudential ups Ericsson to overweight from underweight
Friday April 22, 8:57 am ET
By Steve Goldstein
http://biz.yahoo.com/cbsmb/050422/cf81efff92874a3cbcce1734b9655197.html?.v=1
LONDON (MarketWatch) -- Prudential Equity Group upped Telefonaktiebolaget LM Ericsson to overweight from underweight, saying the GSM slowdown is now reflected in first half estimates and the company could begin to benefit from a WCDMA uptick in the second half. "This was supported by Qualcomm on their call last night where they commented that chipset orders doubled in the March quarter and expect to see sequential growth in all 2005 quarters," the broker said. It also upped its price target to $37 from $26. Ericsson shares were up more than 4% in Stockholm.
Qualcomm Dials Back Optimism
Thursday April 21, 11:34 am ET
By Dave Mock
http://biz.yahoo.com/fool/050421/111409765710.html?.v=1
Yesterday, wireless bellwether Qualcomm (Nasdaq: QCOM - News) reported its second fiscal quarter to an edgy audience of investors looking for more signs of optimism in a tepid market. While a few peers, including Lucent (NYSE: LU - News) and Motorola (NYSE: MOT - News), positively surprised telecom investors earlier in the week, Qualcomm couldn't muster the same. It disappointed with its forward guidance.
On the bright side, in its second quarter of 2005, Qualcomm earned $532 million on $1.37 billion in revenue, up 12% and 9% year over year, respectively. Free cash flow for the quarter was $741 million, leaving the company sitting on a pile of $8.3 billion. The continued increase in cash allowed the company to grow its dividend to $0.09 per share and boost its stock repurchase plan.
Margins dipped slightly, particularly in the chip division, as the company is still spending heavily on R&D -- $252 million this quarter. The San Diego headquarters is a hub of construction; the company is investing in multiple buildings to house new engineering staff as it continues on a resource growth cycle. According to CEO Irwin Jacobs, the company continues to believe that investments in R&D at this point will pay off in the long term.
What really irked analysts, though, was the slight reduction in forward guidance of certain metrics. The main culprit was the realization that the WCDMA flavor of Qualcomm's technology was not being adopted as quickly as anticipated. The company had expected European operators in particular to push more subscribers onto the latest technology, which gives them more feature-rich applications, such as streamed video and music.
I commented in my coverage of Qualcomm's previous-quarter earnings that the uptake in WCDMA was the key growth metric to watch going forward. Qualcomm's stock had a high level of expectation built into it as it closed out 2004, and this update is evidence that even its own optimism about growth was ahead of the curve. The company reported that WCDMA made up 32% of total royalties from licensees, so for the near future, the stock will be strongly influenced by the proliferation of this technology.
The second half of this year could be different, though, and strong growth in advanced wireless handsets may resume. Investors may want to consider the current market pessimism as an opportunity to check into Qualcomm's shares.
Fool contributor Dave Mock is a "glass-half-full" kind of guy. He owns shares of Motorola and Lucent but has no position in Qualcomm, though he has written its first corporate biography -- The Qualcomm Equation.
Star Analysts based on the accuracy of earnings estimates on QCOM
http://finance.yahoo.com/q/sa?s=qcom
This is a list of top research analysts based on the accuracy of earnings estimates on QCOM, according to StarMine.
Total Ranked Analysts: 25
EPS ACCURACY FOR QCOM - Trailing Two Fiscal Years and Four Quarters
Top-Ranked Analysts QCOM Overall Research Reports
Uzdelewicz, Wojtek
Bear Stearns
Faucette, James
Pacific Crest Securities
Ounjian, Michael
Credit Suisse First Boston
Geurkink, Jonathan
Ragen Mackenzie, A Divsn Of Wells Fargo
Schlesinger, Jeffrey*
UBS
Imam, Hasan
Thomas Weisel Partners
Armacost, Christin
Sg Cowen & Co.
Long, Tim
Banc Of America Securities
Snyder, Edward
Charter Equity Research
*Analyst no longer covers this stock.
Top Analysts in the Communications Equipment Industry:
EPS Accuracy - Portfolio Return
OTHER RANKED ANALYSTS
Acree, Cody of Legg Mason Wood Walker, Inc.
Armstrong, Daryl of Smith Barney Citigroup
Benton, William of William Blair & Company, L.L.C.
Bucher, John of Harris Nesbitt
Carpenter, Thomas of Hilliard Lyons
Devendramita, Siddhant of First Global Stockbroking LTD.
Gelblum, Ehud of J.P. Morgan
Hoffman, Matthew of Moors & Cabot Capital Markets
Lin, Albert of American Technology Research
Modoff, Brian of Deutsche Bank Securities
Motey, Karl of Wachovia Securities
Ryan, Casey of Wells Fargo Securities
Singh, Inderbir of Prudential
Teets, Greg of A. G. Edwards & Sons, Inc.
Walkley, Thomas of Piper Jaffray
Zamora, Ren of Loop Capital Markets
stricklybiz, I think Qualcomm's Buy Back program scare away many short sellers. So far QCOM spent over $600 millions and bought back about 19 millions shares of it's own stock. there still $ 1.4 Billions to spend. This is great! Qualcomm will continue to use this method to control it share price.
Rohde&Schwarz Announces Support for Q's FLO Technology
Wednesday April 20, 12:32 pm ET
- Rohde & Schwarz's NV7000 Transmitter Supports FLO Technology Bringing Compelling, Real-Time Multi-Media One Step Closer to Mobile Phone Customers
http://biz.yahoo.com/prnews/050420/nyw156.html?.v=7
LAS VEGAS, April 20 /PRNewswire/ -- National Association of Broadcasters, (NAB) Booth C2633 -- Rohde & Schwarz, maker of the NV7000 transmitter, announces its support for QUALCOMM's FLO technology which enables the multicasting of a wide selection of program choices and high-quality live streaming video and audio to consumers' mobile phones.
Rohde & Schwarz's flagship product, the NV7000, will support the superior FLO technology bringing multimedia to wireless users. The equipment has a compact footprint. Two complete exciters, including the associated automatic switchover unit, can be accommodated in a 19" main frame. The NV7000's exciters are software programs that are designed to allow easy one-step upgrades of the FLO technology-based product. In addition, the unit is liquid cooled, which allows for unique placement and flexible site selection, and has its own power supply ensuring full redundancy.
"Supporting new innovative technologies such as FLO technology is essential to our business," says John Pannucci, President & COO, Rohde & Schwarz, Inc. "We found FLO technology to work seamlessly with our transmitters and know that the end result will be a positive experience for mobile users."
The FLO technology was designed specifically for a mobile multimedia environment and exhibits performance characteristics suited ideally for use on cellular handsets. It uses the latest advances in coding and interleaving to achieve the highest-quality reception at all times, both for real-time content streaming and other data services. FLO technology will ensure robust mobile performance and high capacity without compromising power consumption. The technology also reduces the network cost of delivering multimedia content by dramatically decreasing the number of transmitters needed to be deployed. In addition, FLO technology-based multimedia multicasting will complement wireless operators' cellular network data and voice services, delivering content to the same cellular handsets used on these 3G networks.
Rohde & Schwarz
The Rohde & Schwarz group of companies with headquarters in Munich develops, produces and markets communications, IT and T&M equipment and systems with emphasis on mobile radio, broadcasting, general-purpose and RF test equipment, radiomonitoring and radiolocation, radiocommunications and communication security. Rohde & Schwarz has subsidiaries and representatives in over 70 countries. In fiscal year 2003/04, the group with its 6150 employees achieved revenue in excess of $1 billion. Visit us at http://www.rohde-schwarz.com/USA
All press releases are available on Internet at http://www.press.rohde-schwarz.com .
--------------------------------------------------------------------------------
Source: Rohde & Schwarz
This is interesting:
So far, Preminet has (in six months) only signed up three insignificant operators. By contrast, Qualcomm's BREW on gsm ecosystem hosts 1,500 developers and operators at a typical get-together, and moving into GSM is a real threat.
Nokia ups the heat in its battle with BREW
By Guy Kewney, Newswireless.net
Published Wednesday 20th April 2005 14:15 GMT
Why is Nokia hosting a party in Prague for 60 mobile operators and software writers?
http://www.theregister.co.uk/2005/04/20/nokia_brew_battle/
Qualcomm "outperform"
Tuesday, April 19, 2005 2:09:14 PM ET
RBC Capital Markets
http://www.newratings.com/analyst_news/article_784671.html
NEW YORK, April 19 (newratings.com) - Analyst Satya Chillara of RBC Capital Markets reiterates his "outperform" rating on Qualcomm (QCOM.NAS). The target price is set to $50.
In a research note published this morning, the analyst mentions that the company is likely to post its F2Q05 results in-line with the consensus. WCDMA continues to make inroads in Europe and is being widely accepted across Asia, the analyst says. Qualcomm is likely to capture a 20% market share in the WCDMA segment by the end of the current calendar year.
stricklybiz, normally QCOM declares dividend at the sametime as it's quarterly report. This time it reports dividend one day earlier. It seems that it has some effect on QCOM share price this morning and serves as a preemptive strike to market manipulations. The declation of dividend payment implies that Qualcomm is profitable and will meet or surpass the target as previously guided, just my humble opinion.
Was anybody surprise QCOM declared Dividend One day before the Quarterly Report? Is it a preemptive strike to Market Manipulations by big Guys?
http://www.qualcomm.com/press/releases/2005/050419_cash_dividend.html
QUALCOMM Declares Quarterly Cash Dividend
SAN DIEGO, April 19 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM) today announced a quarterly cash dividend of $0.09 per common share, payable on June 24, 2005 to stockholders of record at the close of business on May 27, 2005.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2004 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
Contact:
Bill Davidson, Investor Relations
1-858-658-4813 (ph) 1-858-651-9303 (fax)
ir@qualcomm.com (email)
SOURCE QUALCOMM Incorporated
CONTACT: Bill Davidson, Investor Relations, QUALCOMM Incorporated, +1-858-658-4813, fax, +1-858-651-9303, ir@qualcomm.com -0- Apr/19/2005 13:30 GMT
Last Updated: April 19, 2005 09:30 EDT
Like father, like son?
April 19, 2005, 4:00 AM PT
By Dave Mock
http://news.com.com/Like+father,+like+son/2010-1022_3-5675693.html?part=rss&tag=5675693&subj...
It seems not a week goes by now that the corporate landscape in America isn't being reshuffled. But in a period marked by turmoil, extreme corporate makeovers and outright scandal at some of America's biggest companies, a little predictability goes a long way.
Even within the walls of companies that take no part in megamergers, managing changes in the executive team requires a delicate touch. San Diego's wireless mainstay Qualcomm was facing such a dilemma with the pending retirement of its founder and CEO, Irwin Jacobs. Jacobs had been at the helm of the wireless technology giant since Day One. For almost 20 years he has guided the company, turning it from a little-known defense contractor into a feared, respected--and sometimes loathed--wireless IP powerhouse.
While the major concern of investors and the Qualcomm board was who would succeed Jacobs as CEO, evaluating just how and when he would pass the baton was a fragile matter as well. A committee within Qualcomm's board took nearly three years to evaluate and craft a succession plan, knowing full well that Jacobs' shoes could not be easily filled. Qualcomm's identity and that of its unassuming leader were intimately tied, unlike companies that sign on new executives for each phase of their existence.
The main question in the mind of investors was whether the CEO position would be kept in the family by passing the role to Jacobs' son Paul. Paul Jacobs had been with the company since 1990 and played an increasingly important role in developing key technologies and products. But even with the younger Jacobs' qualifications, investor appetite for corporate dynasties has waned in recent years, for good reason.
Qualcomm's identity and that of its unassuming leader were intimately tied, unlike companies that sign on new executives for each phase of their existence. Academic research, such as a study by Wharton professor Raphael Amit and Harvard Business School professor Belen Villalong, outlined a "founder effect" in family-owned companies. After analyzing all Fortune 500 companies between 1994 and 2000, the paper determined that companies with founders' descendents in the CEO role retained significantly less value for shareholders. The ideal case was when a founder remained CEO and chairman, or hired a CEO while acting as chairman.
Investors still had a bad taste in their mouth from Motorola's fall from grace and ensuing struggle to regain its prominence in the wireless market. After slipping behind Nokia and losing share more recently to Samsung under the reign of Christopher Galvin (descendent of founder Paul Galvin), the company finally decided to remove family leadership and bring in outsider and former Sun Microsystems executive Ed Zander.
In the end, even against the backdrop of failures past, Qualcomm's board of directors stayed in the family and selected Paul Jacobs to succeed his father as chief executive this coming July. The reason had a lot to do with the culture at Qualcomm, which is unique and slightly eccentric when compared with peers. Bringing in a CEO from outside the company would risk disrupting a strong employee moral base, one that is rooted in technical achievement.
The reason had a lot to do with the culture at Qualcomm, which is unique and slightly eccentric when compared with peers. What makes Qualcomm a rare company is the pedigree of the founders and the culture that has developed within. Qualcomm's business hinges on technical excellence, and it drives every aspect of company operations. Having come from the world of academia, Irwin Jacobs founded Qualcomm with a small group of highly skilled and visionary engineers. Paul Jacobs follows this lineage, with a Ph.D in engineering like his father.
One telling story exemplifies the nature of the organization: One year when the University of California school system significantly raised its student fee levels, many employees found that the fee reimbursement offered by the company no longer fully covered expenses. (Qualcomm has always been a big proponent of continuing education within its ranks.) The president of the engineering group petitioned to change the policy and raise the reimbursement rate for employees, but was rebuffed by the corporate human resources group as the policy was already quite generous in comparison to peers.
After an appeal to higher authority however, the HR group was instructed to ignore peers and accommodate the change. Few corporations I know of today have an engineering group with enough authority and weight to change corporate policy.
For a company strongly aligned along a passion for technology, Qualcomm is likely better off taking the high odds and staying within its technical team for leadership. Otherwise the entrance to the executive office might become a revolving door.
biography
Dave Mock is author of The Qualcomm Equation and a wireless analyst with Currentofferings.com.
Jim Mullens, Many thanks for your help! Please allow me to post the following link:
http://www.siliconinvestor.com/readmsg.aspx?msgid=21230410
ihavenoidea, thanks for your post!
Regards,
Kq
Interesting Information, please see link:
http://www.securitiesfraudfyi.com/morgan_stanley.html
Anybody know what is the percentage that Qualcomm has interest in Nextwave and how much will QCOM receive as result of this transactions?
Verizon completes NextWave acquisition
Telecoms.com News
14 April 2005
James Middleton, james.middleton@informa.com
http://www.telecoms.com/marlin/30000000461/ARTICLEVIEW/marlinsource/SITEartappend20017300904/mp_chan...
U.S. operator Verizon Wireless yesterday announced it has completed the transaction whereby it has acquired all of NextWave Telecom's PCS spectrum licenses, in 23 markets around the country, for a total of US$3.0 billion.
The 10 and 20MHz licenses, in the 1.9GHz frequency range, cover a population of 73 million people and will be used to expand Verizon Wireless' network capacity in 22 key existing markets, including New York, Boston, Washington, D.C. and Los Angeles, as well as to expand the company's footprint into Tulsa, Oklahoma.
The licenses were acquired through the purchase of NextWave Telecom, as a result of Nextwave Telecom's bankruptcy reorganization.
QCOM upgraded, price target raised at CSFB (QCOM) By Tomi Kilgore
8:40am 04/14/05
http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=yhoo&dateid=38456.3613562037-8341....
NEW YORK (MarketWatch) -- Qualcomm Inc. (QCOM) was upgraded to outperform from neutral at CS First Boston on the belief that the wireless technologies company will be able to grow revenue and earnings faster than the global handset market as the adoption its wideband code division multiple access technology is expected to accelerate in 2006 and beyond. Analyst Michael Ounjian also raised his stock price target to $45 from $42.50, his 2006 earnings estimate to $1.49 a share from $1.35 a share, and his revenue forecast to $6.9 billion from $6.5 billion. The stock rose 40 cents, or 1.2%, to $33.30 in Instinet pre-open trading. Meanwhile, Ounjian trimmed his 2005 earnings estimate to $1.14 a share from $1.16 and his revenue projection to $5.8 billion from $5.9 billion. Separately, CS First Boston raised its 2005 global mobile handset growth forecast by 6% to 740 million units and its 2006 forecast by 8% to 797 million units.
Surprisingly Strong 2005 Demand a Key Topic of Wall Street Transcript Semiconductor Equipment Review
Wednesday April 13, 10:29 am ET
http://biz.yahoo.com/twst/050413/yas802.html
67 WALL STREET, New York--April 13, 2005--The Wall Street Transcript has just published its SEMICONDUCTOR EQUIPMENT REVIEW, a report offering a timely review of the sector to serious investors and industry executives. This 40-page feature contains commentary from 3 leading industry analysts, plus in-depth interviews with top management from 12 firms. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
There are some mega trends from the demand side that will persist for a long time, such as digital TV, digital content, audio and video. Technology inventories are being cleared out of the supply chain for chips and we are seeing more strength in equipment orders from major chip companies in the logic and memory market segments. Topics include: Trends driving the industry, new innovations and technology, the Taiwanese players, industry spending, process firms, and the ramifications of more devices containing more silicon content, Stock picks, Companies to Avoid.
Companies include: Intel (INTC). Taiwan Semiconductor Manufacturing (TSM); United Microelectronics (UMC); Samsung; Applied Materials (AMAT); Novellus Systems (NVLS); Lam Research (LRCX). KLA-Tencor (KLAC); Nanometrics (NANO); ADE (ADEX); Rudolph Technologies (RTEC); ICOS Vision Systems (IVIS); Teradyne (TER); Semitool (SMTL); Aetrium Incorporated (ATRM); Brooks Automation (BRKS); Cohu, Inc.(COHU); FEI Company (FEIC); inTEST Corporation (INTT); Kulicke & Soffa Industries (KLIC); MEMC Electronic Materials (WFR); QuickLogic Corporation (QUIK); Genesis Microchip (GNSS); Silicon Image (SIMG); Trident Microsystems (TRID); PortalPlayer (PLAY); SigmaTel (SGTL); Napster (NAPS); Diodes (DIOD); Apple Computer (AAPL). Analysts include: Gerald S. Fleming of WR Hambrecht + Co, Gavin X. Duffy of A.G. Edwards & Sons, Christopher A. Chaney, of Stanford Group Company
In the following brief excerpt, Gavin Duffy discusses the near-term demand outlook for semiconductor equipment manufacturers.
TWST: As you launched coverage, what baseline were you using? What was your framework for the industry outlook?
Mr. Duffy: I think that when I picked up coverage, there was a lot of confusion about what was going on in both the semiconductor and the semi equipment market segments because we had such a very good beginning in 2004 and things had definitely slowed late in the year. We had strong semiconductor shipments of units for the first three quarters and therefore the equipment market really had taken off, but we had seen some weakness in the semiconductor end markets in Q4. I think there was a lot of confusion in terms of what people expected for semiconductors and then the semiconductor equipment market for 2005.
Originally when I picked up coverage, I was projecting 2005 equipment revenues to probably be flat to down 10% on a year-over-year basis, with a 10% decline the more likely scenario. However, we have seen some surprisingly healthy capital spending budgets announced by some of the major equipment buyers like Intel (INTC), Samsung and TSMC (TSM). I think that consensus is slowly moving back more toward equipment spending to be flat to down 5% for the year. The semi equipment space could wind up being flat in 2005 versus 2004 if most of the large buyers hold true to their announced capital spending budgets.
TWST: What's changed?
Mr. Duffy: I think it's a couple of different things. One obviously was the surprising number of increased capital spending budgets. We saw the semi equipment market grow over 60% last year, so many people expected to see big spenders from 2004 pull in the reins a bit this year. However, Intel, for instance, is going to spend $1 billion more this year and it's all going to be on technology buys as they push toward 65-nanometer manufacturing. The memory guys are continuing to spend, and TSMC, the biggest foundry in the world, is also boosting their spending this year versus 2004. I think that's one aspect.
Another aspect is the fact that technology inventories are being cleared out of the supply chain at a decent clip early in 2005. We do a pretty detailed study of technology inventories through the supply chain, from the box makers down through the semi guys themselves, as well as semi distribution and contract manufacturing. What we saw in Q3 was a buildup in inventories, especially in semiconductors and communication chips. We break the two segments out separately in our analysis due to the different ways they impact semi equipment spending. Semi companies with their own fabs obviously buy equipment directly, while communication chip companies outsource their manufacturing needs to foundries, which in turn buy equipment.
What we saw in Q4 (which I thought was kind of surprising) was the degree to which semiconductor guys (and I'm talking about non-communication chip companies) pulled back on production. They essentially bit the bullet in Q4, cut back on wafer starts, basically took the hit to gross margins but got their inventories back in line pretty quickly. We think they will have the remainder of inventories pretty much cleared out by the end of the first quarter.
The communication chip guys, which basically outsource everything to people like TSMC, are probably going to take at least until Q2 before they have their inventories cleared out. What we're seeing at the beginning of this year is more strength in equipment orders from big chip companies in the logic and memory market segments as opposed to the foundry guys, which I would expect to pick up ordering in Q2 as communication chip inventories return to more acceptable levels.
TWST: So that will be a little longer.
Mr. Duffy: Yes. Because the general semis (everybody from the memory guys through analog and microprocessors) in Q4 of last year had revenues increase while inventories decreased, so you had a double positive. But if you look at the communication chip companies, back in the third quarter of 2004, they had revenues decline sequentially while inventories grew, which has a doubly negative impact on growth. In Q4, however, communication chip inventories finally held flat but revenues declined again. I think they're still going to be selling out of inventory levels for the first couple of quarters, especially since Q1 is typically a weaker quarter for most communication end markets.
TWST: What are you telling investors to do at this point?
Mr. Duffy: I think investors at this point should take advantage of pullbacks. I think what's slightly different about this cycle is that there are more opportunities to pick stocks than there have been in previous cycles. I know a lot of investors historically have just bought or sold a basket of semiconductor equipment stocks as they expected all of the companies to trade in the same range. I think this time around, investors should instead bet on companies that are leaders in those segments that are going to grow faster than the overall market.
Those two reasons are why KLA-Tencor is our number one pick. They have a 75%-80% share in most of the markets they address and they're the leading guys in inspection and measurement. If you think about it, without those tools working, chip production grinds to a halt. KLA's tools are some of the first pieces of equipment that a semi manufacturer puts in its fab. If you think about it, KLA is in the business of improving yields. Their tools are probably the least "optional" for chip makers versus other kinds of equipment.
I also like Lam Research. They don't have as dominant a market share position in the etch space that KLA does in inspection, but they are the leader there. They also have a good streamlined business model. I think that etch is also going to grow faster than the overall equipment market. I think the two big things driving that, as everybody knows, is the shift to 300mm, which is driving the complexity (number of layers) of chips, and the shrinking of the line widths on each die. The etch tools will have to get more and more precise.
Overall, I believe equipment companies whose tools really add value, especially in front-end manufacturing, are going to lead the market.
The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 40-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .
Chip Stocks Seen Rebounding In Second Half Of 2005
04.12.05, 10:48 AM ET
http://www.forbes.com/markets/2005/04/12/0412automarketscan06.html?partner=yahoo&referrer=
J.P. Morgan expects semiconductor companies to report mostly in-line first-quarter results with a few disappointments due to weakness from the wireless end market and distributors. "It appears as though [end-market] demand remains sluggish due to seasonality," the research firm said. "However, we are concerned with a possible inventory build in the wireless end market given the pushouts from several handset manufacturers." J.P. Morgan reiterated an "underweight" rating on Agere Systems (nyse: AGRa - news - people ), citing unevenness in its mobile-phone business and an overall sluggish telecommunications market. The firm said Agere will experience ongoing sluggishness from telecom customers such as Nortel Networks (nyse: NT - news - people ), Lucent Technologies (nyse: LU - news - people ) and Alcatel (nyse: ALA - news - people ). The firm said best results should come from companies such as Altera (nasdaq: ALTR - news - people ) and Xilinx (nasdaq: XLNX - news - people ) that are supplying the communications end market, and from companies in the analog segment such as International Rectifier (nyse: IRF - news - people ). J.P. Morgan remains most concerned about companies selling into the wireless space such as Freescale Semiconductor (nyse: FSL - news - people ), Texas Instruments (nyse: TXN - news - people ) and RF Micro Devices (nasdaq: RFMD - news - people ). "For the second quarter, we expect sequential revenue guidance in a range of slightly down to slightly up for most companies," the firm said. "We expect the best relative guidance from programmable logic device and high-quality analog companies due to a recovery in component orders from the communications end market and relatively stable component pricing." For the second half of 2005, J.P. Morgan said chip stocks are likely to rebound thanks to fundamentals bottoming out as well as a combination of low inventory and stable end demand. "We maintain our bullish stance on semiconductor stocks as it appears several leading indicators of the industry such as gross margins, utilization rates, earnings estimates, and year-over-year growth are in the process of bottoming and should improve in the second half," J.P. Morgan.
ABI Research Forecasts Mobile Video's Spectacular Payoff
Tuesday April 12, 9:49 am ET
http://biz.yahoo.com/bw/050412/125540.html?.v=1
OYSTER BAY, N.Y.--(BUSINESS WIRE)--April 12, 2005--Tiny TVs have been around for decades without having much impact. That's about to change, according to a new study from ABI Research. New technologies mean that in the next few years, mobile phone users will be able to watch high quality, full-motion video on their small screens.
Subscribers will also be able to access linked content, and buy program-related products and services from their wireless service providers.
Ken Hyers, the firm's principal analyst of global wireless operator research, says that the new services will be based on a one-to-many model like conventional broadcast TV, rather than using the restricted bandwidth of mobile data networks.
Next month these "digital video broadcast networks" will launch in Japan and South Korea, with similar services to debut in the U.S., Europe and elsewhere in late 2006/early 2007. The content will largely mimic that of the short clips now available from some mobile services: news headlines, sports, children's programs, drama "Mobisodes" and music videos.
Mobile broadcast video networks won't be run by mobile operators. In the U.S., QUALCOMM and Crown Castle are launching the first services. Mobile operators will profit by providing "enhanced content": over the cellular network, users can go back to the operator and buy "stuff" -- ringtones, sports statistics, fan club materials and more -- linked to the topic they've just viewed as TV. The list of revenue opportunities is huge.
"This is going to be spectacular," says Hyers. "It's going to be worth a lot of money. It's not an understatement to say that this is going to be a new goldmine for wireless operators."
The study, "Mobile Broadcast Video," explains the technology behind mobile video broadcast services, the companies involved and the revenue opportunities that will be created. It will be followed by another report, "Mobile Television," which approaches this market's requirements for ICs and software.
Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516-624-2500.
--------------------------------------------------------------------------------
Contact:
ABI Research
Beth Schechner, 516-624-2542
pr@abiresearch.com
--------------------------------------------------------------------------------
Source: ABI Research
Forward Concepts Forecasts a Very Good Year for 3G Cell Phone Shipments, but a Down Year for Those of Older Technologies
Monday April 11, 9:15 am ET
http://biz.yahoo.com/bw/050411/115244.html?.v=1
TEMPE, Ariz.--(BUSINESS WIRE)--April 11, 2005--Forward Concepts has announced the publication of an in-depth study of the worldwide cell phone market and the chips that go into them. The new 560-page study, "Global Cellular Handset & Chip Markets," is an extensive analysis and forecast of the market. In addition to detailed forecasts (by technology and by region) of handsets, chips and subscribers (by country), the study profiles cell phone OEMs, ODMs, cellular operators and the key chip vendors.
In addition to handset and chip forecasts by technology (2G, 2.5G, 3G, HSDPA, 3.5G) and global region, the report provides estimates of the market shares of the 40 major cell phone vendors, the market shares of the top cell phone chip vendors for digital basebands, analog basebands/power management, RF transceivers, RF power amplifiers, application processors, camera sensors, Bluetooth and color display drivers.
The study concludes that 2004 cell phone shipments reached a record 715 million units, including inexpensive PHS/PAS units in China. The study projects that 2005 overall unit sales will increase only by 4.5% to the 746-million level as larger markets for older technologies decline, offsetting strong gains by newer technologies. For example, older TDMA shipments are projected to fall by 30% and even traditional GSM shipments will decline by a projected 23% this year.
On the other hand, cell phones addressing newer high-bandwidth technologies will grow sharply. EDGE cell phones will grow by 51% to the 60-million unit level, WCDMA cell phones will grow by 165% to the 45-million level and CDMA2000 1xEV-DO terminals (cards and handsets) will grow by 65% to 16-million units. Although being rapidly displaced in Japan by newer technologies, cell phones based on 2G Personal HandyPhone service (PHS) are projected to grow by 24% to the 77-million level as the inexpensive units gain ground in China, Taiwan, India and other countries.
According to the principal author, Carter L. Horney, "Our assessment is that Texas Instruments remains the number-one cellular chip provider, overall, and also the number-one provider of baseband chips for both 2G and 3G/UMTS cellular. And, with their OMAP2 application processor, they have quickly become number one in that market segment as well. TI can't be complacent though, since Qualcomm still dominates the CDMA market and has a large number of design-ins for its UMTS baseband chips. Freescale Semiconductor had a very good year in 2004 and is also gaining ground in the cellular chip market."
Will Strauss, Forward Concepts' president and editor/contributor for the report, said, "The cellular handset has become the physical and market magnet that is pulling in the functionality of digital cameras, PDAs, MP3 players, GPS navigation, Bluetooth and even Wi-Fi, and is quickly becoming the dominant market for each and all of these functions and more. This market study explores the market dynamics of each of these functions and the cell phone chip prospects for each of them."
The 560-page study, "Global Cellular Handset & Chip Markets," includes 110 figures and 105 tables, and is available from Forward Concepts for $3,750 (North America) in hard copy and in electronic form under a global enterprise license for $7,500. Details are on the company's Web site at www.forwardconcepts.com/handsets.
--------------------------------------------------------------------------------
Contact:
Forward Concepts, Tempe
Will Strauss, 480-968-3759
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Source: Forward Concepts
Asia Pacific mobile phone sales rise 24 percent in 2004: Gartner
Fri Apr 8, 1:09 PM ET Technology - AFP
http://news.yahoo.com/news?tmpl=story&u=/afp/20050408/tc_afp/asiatelecommobile_050408170905
SINGAPORE (AFP) - Asia-Pacific mobile phone sales excluding Japan rose 24.1 percent to 164 million handsets in 2004 on strong demand for low-tier models, the Gartner research house said.
Reigning market leader Nokia increased its total annual sales in 2004 by 28 percent to 50.6 million handsets, driven by the popularity of its mid- and low-tier models in emerging markets India and China, Gartner said.
"Phones with cameras and colour screens accounted for the majority of sales in the low-tier segment, slowly eroding the share of black and white display handsets," Gartner analyst Ann Liang said.
Third-generation (3G) handsets, meanwhile, proved unpopular among Asians in 2004, although sales were expected to pick up this year as the technology becomes increasingly available in the region, according to Gartner.
"Sales of 3G handsets were disappointing, due to a lack of popular models and with operators continuing to focus 3G marketing efforts on customers with high calling patterns," said Liang.
Nokia's market share in Asia last year was 30.8 percent, 1.0 percentage points higher than in 2003.
Samsung grabbed second position in the region, with sales volumes increasing by 31 percent to 28.2 million, or 17.1 percent market share, on aggresive advertising and marketing, the research house said.
Motorola had the third biggest presence with sales of 18.6 million, despite losing 1.4 percentage points in market share to 11.3 percent.
LG, whose market share fell by 1.1 percentage points to 5.7 percent, was next with sales of 9.3 million handsets in 2004.
SonyEricsson, with a market share of 4.9 percent on 8.1 million sales, was in fifth position, while Bird registered a 1.0 percentage point decline in market share to 3.5 percent with sales of 5.8 million
EV-DO Wireless Broadband Access Makes Inroads
April 8, 2005 6:04PM
http://wireless.newsfactor.com/story.xhtml?story_id=32594
KDDI Touts 18M Subscribers
04.08.05
http://www.unstrung.com/document.asp?doc_id=71646
TOKYO -- KDDI (TSE: 9433 - message board) and Okinawa Cellular (TSE: 9438 - message board) are pleased to announce that the total number of subscribers for 3rd generation cellular phones provided by KDDI and Okinawa Cellular exceeded 18 million on April 6, 2005.
KDDI and Okinawa Cellular launched CDMA 1X au cellular phones On April 1, 2002, enabling the seamless use of nationwide services exclusive to 3G cellular phones, such as "Movie Mail", "Photo Mail", and EZ "Chaku Uta(R)".
CDMA 1X WIN, based on the CDMA 1x network, launched in Novemebr 2003, enabling high speed data communications of up to 2.4Mbps, and allows the popular 3G EZweb services EZMovie and EZ Chaku Uta. In addition, CDMA 1X WIN hosts a series of rich services dedicated to CDMA 1X WIN, including EZChannel, an innovative service that automatically distributes various genres of program, and Live Camera, a service that delivers desired video content in real time.
KDDI Corp.
Japan Posts 3G Growth
By Susan Rush
April 7, 2005
news@2 direct
http://www.wirelessweek.com/index.asp?layout=document&doc_id=1340004320&verticalID=34&ve....
The outlook for Japan's 3G outlook is steady, yet moderate, according to an analyst report.
NTT DoCoMo recorded 3G W-CDMA subscriber growth of 1.2 million in March, up from 724,000 additions a year ago. DoCoMo is approaching 11.5 million W-CDMA subscribers, according to a Lehman Brothers report.
Rival KDDI added 541,000 CDMA 1X customers during March. The company has roughly 1.954 million CDMA 1X and CDMAone subscribers, according to the report.
Vodafone Japan, meanwhile, picked up roughly 241,000 W-CDMA customers in March, to end the month with 917,000 W-CDMA subscribers.
Lehman Brothers analysts said the growth makes the longer-term outlook for CDMA pioneer Qualcomm for full-year 2006 and beyond look "impressive."
BofA raises communications equipment
Tue Apr 5, 2005 12:00 PM ET
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8091404
Next Inning Technology Research Provides Updated Outlooks for
Marvell Technology, Texas Instruments, QUALCOMM and PMC-Sierra
http://quote.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM:US&sid=aW1dqK...
PRINCETON, N.J., April 4 /PRNewswire/ -- Next Inning Technology Research ( http://www.nextinning.com ), a subscription service focused on semiconductor and technology stocks, announced today that it has provided to members updated analysis of communications semiconductor stocks, including coverage of Texas Instruments (NYSE: TXN), PMC-Sierra (Nasdaq: PMCS), Marvell Technology (Nasdaq: MRVL) and QUALCOMM (Nasdaq: QCOM).
Next Inning Technology Research editor Paul McWilliams provided members with his most recent Strategy Review, commenting on the outlook for technology stocks over the short and medium terms.
"With tech shares largely beaten down this year, it seems logical to expect a rally of some degree going into earnings. While we think earnings are going to be broadly at or above the consensus estimates, we believe what we've termed as 'valuation consternation' will be a stronger force. This means we think investors will be fearful of holding stocks that are trading at significant valuation premiums," McWilliams wrote.
McWilliams' analysis looked at the following company-specific topics, among others:
-- Rumors of "a bonus" coming at Marvell Technology from one of the
company's product lines and a look at how the company's quarter is
shaping up.
-- Why McWilliams sees QUALCOMM and Texas Instruments as two distinctly
different plays within the wireless sector.
-- What to expect from Q1 sales of CDMA phone chips and why this may
create an opportunity in QUALCOMM.
-- How recent telecom acquisitions may affect PMC-Sierra's current
quarter.
To read Next Inning's complete commentary and its latest coverage of the above companies, sign up for a 30-day complimentary trial. You'll also receive free access to Next Inning's latest "State of Tech" report, a $149 value:
https://www.nextinning.com/subscribe/index.php?refer=prn52
Founded in September 2002, Next Inning's model portfolio has returned 252%. In 2005, its equity positions have returned nearly 6% versus a loss for the NASDAQ.
About Next Inning Technology Research
Next Inning Technology Research is a subscription financial newsletter focused on technology stocks. Editor Paul McWilliams is a 20+-year industry veteran.
NOTE: This release was published by F.P. Real Ventures I, LLC (CRD #131926), a registered investment advisor with the NASD and State of NJ. Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
CONTACT: Rusty Szurek, Next Inning Technology Research, +1-888-440-6116
SOURCE F.P. Real Ventures I, LLC
CONTACT: Rusty Szurek, Next Inning Technology Research, +1-888-440-6116 -0- Apr/04/2005 20:41 GMT
Last Updated: April 4, 2005 16:41 EDT
©2005 Bloomberg L.P. All rights reserved.
TechSpin: Motorola Markets to Poor
Cell phones divide to conquer Third World; NCR rattled by CEO’s move to HP; Open source thinks globally, and woos Australia.
April 4, 2005
http://www.redherring.com/Article.aspx?a=11673&hed=TechSpin%3A+Motorola+Markets+to+Poor§...
Motorola breaks “poor” price barrier
The big challenge for the world’s cell phone manufacturers is how to make phones that the world’s poor can afford. As the U.S. and European markets for cell phones become increasingly saturated, cell phone makers are starting to service the other 5 billion people on the planet, most of whom cannot afford cell phones with cameras and digital music players. With landlines either non-existent, poorly maintained, or under the governance of corrupt monopolies, the Third World can benefit from the emergence of a simple, inexpensive device. The most costly element in cell phones is the radio chip, which supports either GSM or CDMA. GSM chips cost around $12; CDMA chips are about $20. The effort to drive down costs, then, favors GSM. That means that GSM-focused chip makers such as Texas Instruments and Freescale Semiconductor are ahead of the game. On the flip side, it means that CDMA chip king Qualcomm will have a much harder time satisfying the global majority. But Qualcomm is not conceding the fight. “CDMA can't compete on the price, but it can on features offered to operators and customers,” Bill Davidson, vice president of investor relations for Qualcomm, told Investor’s Business Daily. “GSM’s only growth is to offer low-end voice service,” he said. According to IBD, to get costs down, 10 operators from Africa, the Middle East, and Central and Southeast Asia issued a bid to cell phone makers to come up with a low-cost phone. Motorola won with a sub-$40 phone. Freescale is Motorola’s biggest phone chip supplier. The phone Motorola is designing has immense potential. The company is in line to sell 6 million immediately to carriers in poor countries, with the additional potential to reach 100 million per year in shipments. Nokia is also in the game. In January, the company said it plans to start selling a low-cost GSM phone using a Texas Instruments chip.And not to be outdone, Qualcomm, in February, said it has designed low-cost chips for CDMA phones for Latin America, India, and China.