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Rational & Possible Price for IDCC?
There was an article in today's WSJ about the criteria some mutual fund managers use to select both value and growth stocks.
I reproduce some of the article below. I especially like this part:
"For example, if a company is more than two times more profitable than the market, due to compounding, the market will pay more than two times the market multiple for it."
"For value fund, they look for companies priced at a discount to the market, but that's only the beginning of the process.... seek out companies with latent potential so they can be significantly better five years down the road through internal growth,a new product development or the like. Waiting for that improvement can be difficult but necessary.
"Having patience is perhaps one of the most underestimated virtues in investing.... It's tough to make two right decisions-
the exact entry point and the right exit point. Better to find companies at good valuations, with good possibilities and then hold on for the expected improvement to materialize"....
For Growth Fund - "isn't shy about paying a premium for companies expected to grow faster than the market but won't take his eyes off valuation... To arrive at a guideline, he compares a company's profitability against it's market value, using a debt-adjusted price-to-book ratio. By looking at price-to-book and profitability, we can compare what the market wants to pay for this profitability. This is not a linear relationship but an exponential one... For example, if a company is more than two times more profitable than the market, due to compounding, the market will pay more than two times the market multiple for it."
Question: How much more profitable is IDCC expected to be more than the Market? Isn't the market about 20x EPS? Comments?
Also, could someone post this on Raging Bull as I am not a member there.
L2v - Been there done that- great post-EOM
Bill- You & Carol are included in my daily rosary.
The all-in-one
color BlackBerry
The new 7230 is a
cell phone, PDA, browser, multi-mailbox device
REVIEW
By Gary Krakow
MSNBC
Aug. 11 -- While Microsoft and Palm have been working on their own versions of combination PDA phones, the creative makers of BlackBerry have quietly molded their new handheld device into a wonderful email-PDA-world phone -- with a spiffy new color screen to boot.
IN A NUTSHELL, the folks at Research in Motion (RIM) have transformed what used to be a pager that handled 2-way emailing into a compact, smart all-in-one device.
According to RIM, their new 7230 is superior to older models because of:
E-mail, phone, SMS, browser and organizer applications available in a single wireless handheld,
Increased memory (16 MB of flash and 2 MB of SRAM) for greater application and data storage,
Full-featured connected organizer with PC synchronization,
International roaming support,
USB connectivity,
Smaller form factor with a light and comfortable feel and
World Tri-band handheld, operates on 900/1800/1900 MHz GSM/GPRS wireless networks, allowing for international roaming between in North America, Europe and Asia Pacific
BY THE NUMBERS
The 7230 is about the size of a deck of cards, and weighs under 5 ounces. The nifty new color display screen supports more than 65,000 colors. The unit's QWERTY keyboard and screen are backlit. Navigation is handled by a thumb-operated trackwheel and an escape key on the right. A phone button on top of the device takes you directly to the 7230's phone functions.
There's an integrated speaker and microphone (for holding the BlackBerry up to your ear) and a jack for a hands-free headset. Message notification is handled by your choice of tone, vibrate, on-screen or LED indicator. The removable/rechargeable Lithium battery is supposed to provide up to four hours of talk time and 10 days of standby time -- although RIM warns that battery life may vary on usage.
The 7230 incorporates Java 2 Micro Edition (J2ME) operating software -- which means that this BlackBerry can do a lot more that previous models. Integrated inside, the 7230 allows e-mail attachment viewing on several platforms, including Microsoft Word, Excel, PowerPoint, WordPerfect, Adobe PDF and ASCII text. (MSNBC is a Microsoft - NBC joint venture.)
HOW IT PERFORMS
I've been playing with a 7230 for a few weeks now. I've been using it as my cell phone, phone book, portable Web browser, appointments calendar, and e-mail device (not just my corporate account, but also e-mail from a few POP3 Internet accounts.)
You have to synch the device with your PC before you can use it wirelessly. That's simple -- it comes with a USB cord which also charges the battery while your BlackBerry is attached to your computer. The USB cord also comes with an attachment that allows it to double as your portable AC adapter. RIM even provides U.S. and European plugs for when you travel. The entire install/synch routine took less than 5 minutes.
I have to test these devices without ever trying their server solution. MSNBC.com does not run e-mail forwarding software from any company on our servers. (More than 11,000 companies worldwide do run it.) Too bad, when your company uses server software you can do many tasks -- such as kill an e-mail on your PDA device and have it removed from the server -- and most importantly you can wirelessly coordinate your appointments calendar as well as your e-mail.
Even though I'm forced to run the BlackBerry desktop redirector software on a remote PC, I get the idea. The e-mail portion of the 7230 works just like I remember it from previous versions: quick, easy and fast! Data access was good on T-Mobile's GPRS data system -- when I was in an area where I could access that network. Overall, Blackberry still provides the best wireless e-mail user experience.
The color screen is terrific. The screen's backlighting is on the weak side, but it does the trick when I must check something in a dark bedroom or movie theater. The keyboard is small for my fingers, though your mileage may vary. Navigating around the device sometimes takes some getting used to, although that's the case for just about every device I test. Once you get in the groove with using the trackwheel and the buttons, everything begins to make sense. Playing games is actually fun.
As for battery life, I was able to squeeze 4-5 days per charge out of my 7230. That included constant e-mail use (300-400 a day), some Web surfing, some appointment notifications and light cell phone use. Even though it's not the ten days that RIM claims, it's still better than any other color phone or PDA/phone combination I've tested thus far.
The 7230 is a good phone too. I heard the people at the other end and they heard me. Connections were static free and usually rock-solid (again, depending on my location), which is a great improvement over earlier BlackBerry designs. On the whole, I'm very impressed with the size, feel and operation of this new 7000 series handheld.
THE CARRIER
Even though this new BlackBerry design will work with any carrier anywhere (with the right radio board inside), the 7230 is designed to work on T-Mobile's 1900MHz network in the U.S., and it can roam worldwide on 900MHZ and 1800MHZ systems.
T-Mobile is selling the 7230 for $399.99 -- not bad price for such a useful combo device. As for service plans, T-Mobile cell phone users can add 24/7 BlackBerry service for $29.99 a month in addition to their monthly cell phone charges, or $39.99 a month for the BlackBerry with cell phone use charged at 20 cents per minute. Both deals sound pretty fair.
Until someone comes up with something better, RIM's BlackBerry 7230 now sits at the top of the roost for wireless PDA/phone/email devices. I can't wait for the Nextel version with a Direct Connect button on the side and a speakerphone!
Still Long & STRONG! - EOM
Msc - thanks EOM
Mschere -
Is that $1B rev or earnings?
INTERDIGITAL EXECUTIVES TO PARTICIPATE IN PRESENTATION TO THE FCC
King of Prussia, PA, July 9, 2003 . . . InterDigital Communications Corporation (Nasdaq: IDCC), a leading architect, designer and provider of wireless technology and product platforms, and member of the TDD Coalition, today announced that Company executives will appear before the Federal Communications Commission (FCC), along with other members of the TDD Coalition, to present a tutorial on the applications and benefits of Time Division Duplex (TDD) technologies. The tutorial will be held today from 9:30 a.m. to 12:30 p.m. at FCC headquarters in Washington, D.C.
InterDigital's Chief Technology Officer, Dr. Alain Briancon, will present the economic benefits of TDD technology for different deployment options and marketing strategies, and will highlight the cost savings of TDD compared to Wireless LAN and CDMA2000. He also will present the advantages of using TDD and Frequency Division Duplex (FDD) as an integrated WCDMA solution.
Brian Kiernan, InterDigital's Senior Vice President for Standards, will present on the coexistence of TDD and FDD mobile wireless systems. Mr. Kiernan will discuss the issues surrounding mobile coexistence and will report on the status of industry groups examining the matter and their findings to date.
"We are pleased to play an active role in the TDD Coalition's presentation to the FCC," said Dr. Alain Briancon, Chief Technology Officer, InterDigital. "The opportunity to present the merits of TDD comes at a time of growing global consumer demand for mobile wireless services beyond voice. Operators are seeking flexible, cost effective solutions that enable them to maximize revenue opportunities and fully leverage available licensed spectrum, particularly in 3G wireless, lower operating costs and differentiate themselves in the marketplace. TDD deployed in a complete WCDMA solution is a very effective solution to meet these operator requirements."
The tutorial, hosted by the Office of Engineering and Technology, will take place in the Commission Meeting Room (TW-C305), 445 12th Street, S.W., Washington, D.C. and is open to the public.
Further information on the TDD Coalition's presentation to the FCC can be found on the FCC's website at www.fcc.gov.
About the TDD Coalition
The TDD Coalition is an industry consortium that promotes TDD technologies. TDD Coalition member companies include: Aperto Networks, ArrayComm, AT&T Labs, BeamReach Networks, Broadstorm Telecommunications, Harris Corporation, InterDigital Communications Corporation, IPWireless, LinkAir, and Navini Networks. Membership in the TDD Coalition is open to all organizations that support its goals and the coalition encourages interested parties to join.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers. InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com. InterDigital is a registered trademark of InterDigital Communications Corporation. All other trademarks are the property of their respective owners.
# # #
HABU - Post with much GRAVITAS! EOM
U.K. fears camera phones use by pedophiles
Cellphones banned at swimming pools, gyms
By Jennifer Carlile
MSNBC
LONDON, June 19 -- Advances in cellphone technology has spurred an insidious new threat -- the use of the increasingly popular camera phones by pedophiles to photograph children. Across Britain, swimming pools and sports facilities have cracked down on their use while the YMCA in the Australian state of Victoria has also imposed a ban. Officials have yet to raise a clamor in the United States, where the devices have only recently become widely available.
‘There was an incident in one center. No-one had realized the potential threat (of camera phones) before, but the huge potential from the one incident alerted us to what could be a significant problem.'
-- RALPH RILEY
Chief Executive of the Institute of Sport and Recreation Management U.K. PARENTS AND child protection agencies say they worry that pedophiles will use the state-of-the-art camera phones to surreptitiously photograph children in changing rooms, instantly mailing the pictures around the world or posting them on pornographic websites.
Britain's Home Office, the country's main policing body, joined recreation and child protection agencies recently issued a guidance statement warning of the potential risks involved with the new technology.
Sport facilities across the country have since addressed the issue and many have decided to put up signs alerting the public that camera phones are banned on their premises.
"There was an incident in one center. No-one had realized the potential threat (of camera phones) before, but the huge potential from the one incident alerted us to what could be a significant problem," said Ralph Riley, director of the privately run Institute of Sport and Recreation Management.
Riley declined to give details of the incident. He added that people have always been asked to use traditional and digital cameras "with discretion in a swimming pool" and that photography will continue to be allowed with special permission.
Meanwhile, a local authority the area of Manchester in northwest England has issued a statement that anyone wishing to use any camera, including camera phones, will have "on their person a visible sticker authorizing consent if challenged by a member of staff or public."
BAN NOT EASY TO ENFORCE
Though few disagree with the ban, most agree that its enforcement will not be easy. Unless swimmers spot the culprit eye-to-eye, the sound produced by the click of the camera's simulated shutter would likely be drowned out by youngsters' shouts resonating through tiled changing rooms.
A spokesman for the National Society for the Prevention of Cruelty to Children said pool patrons should "leave such phones at reception," and that "there should also be designated and trained members of staff to help people to report their concerns if they see someone taking a picture."
Concerns have spread around the world. In Australia, the YMCA of Sydney rejected a push to accept the ban because it was deemed too difficult to enforce. Sydney's decision was taken despite a ban now in effect for the 110 YMCA facilities in the state of Victoria, and after a man pleaded guilty to filming young girls in a pool changing room in Melbourne.
SCRAMBLING THE SIGNAL
A costly, futuristic way of preventing pedophile photographers would involve scrambling radio signals so that cellular phones could not be used at all in changing areas.
Advertisement
Japan and Australia have allowed such systems, known as GSM jamming, to prevent noisy interruptions at venues such as theaters.
However, jamming systems are illegal in Britain and can disturb emergency communication signals. They may also have an impact on cellular phone usage in proximity to the designated area.
"With the introduction of new developments, such as wall-lining materials which significantly reduce the power of radio signals (recently tried in Japan), it may be possible to avoid using jamming devices and localize areas to be mobile (cellular)-free," said Tom Perrott, director, of TNS Telecoms, a telecommunications information company, in a press release on the TNS website.
However, such legislation could break the bank for most cell phone operators.
CAMERA PHONES IN CRIMINAL ACTS
Primarily due to the limited availability of camera phones, the vast majority of countries have not considered the ban.
Local recreation officials have raised the issue in Boulder, Colo., but the ban has not been discussed at a national level in the United States.
"That's the very first I've heard of it," said Lili McGovern, manager of aquatic services for the National Recreation and Park Association.
‘Our message is that technology has to be used responsibly.'
-- TOBY ROBSON
Senior press officer for Vodafone "I don't know that cell phones with cameras are that widely used right now (in the United States). I believe cell technology is more advanced in Europe and Asia than here."
Experts say that as the use of camera phones becomes more widespread, their involvement in criminal activity will likely increase.
Police in southern England are currently investigating a case in which bystanders allegedly used a video-equipped cell phone to film the rape of a woman in a bar bathroom. Questions are also being raised concerning the use of similar technology in strip clubs.
"On the flip side there are plenty of examples of positive use," said Toby Robson, senior press officer for Vodafone, a cellular telecommunications company.
For example, "doctors can use camera phones to send x-rays (to specialists) and receive information on them right away."
"Our message is that technology has to be used responsibly," said Robson.
Saudi Arabia, on the other hand, has decided that the risk camera phones present outweighs their benefit and has adopted a simple prevention plan: Saudi authorities have banned the devices from the kingdom all together.
KoP - Final
Q & A period - continued
-Why did Idcc only settle for 34 $m in the Ericy law suit?
No one was anxious to answer this qestion. After a few back & forth "you take its", Howard finally took it.
HG said the settlement was a business decision. No matter how strong you think your case is, it's still a crap shoot to go to trial and put it in the hands of 12 jurors who may not know your business. The trial would have solved Ericy but not Sony/Ericy. S/E came to the table even though they didn't have to. We knew the law suit was holding the company back from progressing. RIM got done because of the momentum from the Ericy settlement.
So where did the pressure come from, a business imperative or a federal judge who threatned to unseal one file a day until the parties settled? I heard this last comment in Bill D's room after the meeting. Maybe others present could comment on the veracity of this point.
Summary
I came away feeling more confident than ever about our investment. When a conservative mgt continues to use the word "momentum" in almost every other sentence and begins using the word "accelerate" in its news releases, it's only a matter of time before quarterly earnings accelerate. To me, "accelerate" means geometric growth as opposed to arithmetic growth. I believe when this happens, we will command a higher
multiple than the conservative 15 to 20 we have used recently.
Thanks to Bill D for all his hard work that enables us to share info each year. Enjoyed meeting many of you and hope to meet many more of you at future meetings.
Cap
Sailfree - Who Mr Espy is
I spoke with Espy after the meeting.
He is William W. Espy who owns the Espy Company, a real estate investment banking firm at 100 Northcreek, Suite 150, 3715 Northside Parkway,NW, Atlanta Ga.
He stated that his company does not own Idcc stock, but rather has a sizable personal position. He apparently has connections on Wall Street and went to four different analysts to get them to cover IDCC. They refused citing the insider selling.
I don't know what his other agendas may be,but my impression was he has a lot of disposable money, takes positions, and then trys to get analysts' coverage to make his profits happen as quickly as possible. About that time, HC came up and they went in the lobby for their tete(s) a tete.
I find it instructive that these analysts screen and decide on such narrow criteria as insider selling while we believers in the fundamentals continue to hold and make money.(well, maybe not until we sell)
KoP
Highlights from Hg's presentation
-W are positioned "wonderfully" with other companies.(This means that as other companies strapped for cash spend less & less on R & D and cap exp.,partnering with idcc allows both to take advantage of the changes in the value chain).
-Mergers & Acquitions - Will not do it just to do it. Over the next 5 years, we will proceed only if the right risk/reward is present and it is a good fit for Idcc.
-Momentum - We feel it everyday. Doors that wern't open to us before are open now.
-Employees - 314 total - 138 have advanced degrees - 42 have PHDs and some of these have a second Phd.
Highlights from Rip's presentation.
-Smart RRM - Proprietary to IDCC - optimizes TDD performance - far less likly to drop signal or lose data when this is incorporated.
-3GSM Congress - IDCC may have been the only Co there with total FDD-TDD solution at 384 kilobts/sec. We are working on taking it to 2 million megabits per/sec.
-Monetizing the patent investment - Licensing, while beginning to accelerate, was the early revenue stream. Now the Tech is beginning to be placed in products (RIM announcment yesterday).(My comment - This board has done a wonderful job of quantifying and projecting licensing revenues. I think it would great if we could put the same effort into quantifying and projecting the product revenue stream).
After the two presentations, about 1/2 the room gave a standing ovation to Howard & his team.
Question & Answer period
Espy-Since 1999,when 48m shs were outstanding - 7.9m shs have been granted,108m shs have not yet been granted and an additional 5.6m shs are to be granted - all of which would represent a 50% dilution. If prop 2 passed, it would represent a 60% dilution. He quoted Buffet as stating that independent directors should have meaningful investment in the co - "skin in the game". He proposed realigning the corportion to bring in technolgical leadership and expanding the board. He attacked HC for receiving 57% of the options and not giving more to the employees.He accused HC of having a conflict of interest as he sits on the compensation committee.
Compagna's counter- Gave the history of his assistance in helping the company in earlier difficult years (112,000 loan to help meet payroll,-non-payment of interest twice, etc. as reported in my earlier post),and his non-compensatory continuing contributions. HC stated that 2/3 of the options go to non-executive employees. Further, while sitting on the compensation committe and having a say as to what other employees should receive, he has no say in his own compensation. The BOD determines what he should receive.
More later.
KoP #3
Prior to the meeting Frank Marsala was working the room like a pro. He was warmly received by all including Harry C who went out of his way by coming down off the podium to welcome him. This implies good acess which gives greater credence to Frank's perceptions/judgements etc.
Meeting called to order
Introductions by Harr C.
BOD- clontz, Roth, Bogliano, & Goldberg
Exec - Hicks,Issacs,Miller,Merritt,Lemmo,Shay
Voting - (numbers rounded)
51.5 million shs or 92.5% certified as effective vote from the available float.
Bod - Bogliano-48.3million shs Goldberg-48.4million shs
Options-8,600,000 for 20,400,000 against
(Comments paraphrased)
HC then made some comments about the options issue. The main purpose was to recruit and retain good employees to keep the company competitive.
He gave an example from several years ago. An Idcc employee from the Melville,NY office left and opened a new company a few doors down from Idcc. He was successful in raiding a large number of idcc engineers by offering big options in conjunction with an IPO. IDCC countered by offering the largest no of options in one year ever(over 1 million).Options help employees to become owners of the Co when they are given options. He stated that two thirds of the options went to non-executive employees.
HC emphasized his passion for the company ever since he loaned them $112,000 to meet payroll 7 (?) years ago. He introduced an employee who did not get paid then but stayed on when offered options.Interest payments to HC were missed twice but HC never tried to take advantage. Recently, HC has received 3 offers to leave IDCC. He said he is not going anywhere as he loves and is committed to this company.
Running 0ut of gas - will post more tomorrow.
KoP #2
My head's a little clearer this morning and I can add a little more to what I said last night.
While it is critical to get Nok & Sam rates set for 2 - 21/2 G, to make believers out of the Street, the situation remains VERY FLUID!! Negotiations are going on continuously among many parties and there is always the possibility (not probability) that a 3G agreement could pop out of Nok/Sam negotiations. This would make believers out of the whole world.
We never got around to talking about all of our agenda, exit strategies etc. Once Frank had center stage, we spent the entire night picking his brain.
Frank is one of the most likable people I have ever met in his kind of position. He is quite humble and while he knows a great deal, he came to learn as he heard IDCC had a most "unusual set of stockholders" (I'm not sure, but I think he got that from IDCC). I think that is a great compliment and shows respect for the contributors (the ones that have "gravitas") and due diligence of this board as well as Jimlur's leadership.He said most good boards break down over time if dicipline is not maintained. If he reads them and can't learn anything that helps him, he will stop reading it.
One of the things he learned from us last night that he had not heard before was there was a possibility we could collect some 2 or 21/2G money from Motorola.
We are meeting again at 9:30 this AM. Frank will be there. (I got him to promise that he would come back next year). Gotta run - will post more tonight after the meeting.
By the way, the first time he saw Bill Ds Telecomteckstocks thread, he said Wow! I gotta look into this some more. We all owe Bill a debt of gratitude for what he has done. It would also help if we send him a donation once a year. I don't know how many are on this board now but a couple of years ago, thirty bucks a piece would do it for a year. ( It takes about $200-$250 a month to maintain his web site).
Later
Report From K o P
Just returned home from the Marriott. Bought TC a drink before I left - he was feeling quite mellow and got very quiet - a change from his boistrous ways earlier in the evening. Good thing his wife gave him a pass - don't know what kind of shape he'll bein tomorrow!!!!!
Bill D got the first discussion session going at 7pm. There were about 20 in attendance. We went around the table, introduced ourselves and stated questions we hoped to get answers to. As we were finishing up, a latecomer came in and sat down. He appeared to be in his late 30s, sharply dressed, professional in manner and seemed different from the rest of us.
When his turn came, he said "My name is Frank Marsala of Halpern Capital". There was a spontaneous outburst of applause as our jaws dropped.
I will summarize some main points and I am sure others will provide their impressions and more detail later.
-When Ericy settled, that's when he decided to initiate coverage.
-the Street doesn't believe(understand) that WCDMA will happen. Signinging of Nok and Sam will be critical in turning this belief around. He beleives (not guarantees)it will happen in the third quarter.
-He talks to a lot of people (including idcc) to get to a good comfort level about the things he talked about.
-He beleives another analyst will initiate coverage shortly.
I was very impressed with his forthright manner, integrity and demeanor - a real straight shooter. TC says: He's got real b__ls to show up not to mention the directness of his conversation.
More tomorrow - gotta run.
TC
I'll be getting there about the same time. As a fellow paison, you can count on me.
Teecee-
I live in the area but will be there for Bill D's discussion session from 6 to 8 pm
My candidate for next IDCC.
xybernaut (XYBR)
More risk than reward at this point. But if it makes it over the hill in the next 3 to six months,-rewards could be substantial.
Do your own due diligence.
Nervy Nokia Gnawing Away at Qualcomm
By Scott Moritz
Senior Writer
05/27/2003 07:06 AM EDT
Click here for more stories by Scott Moritz
http://www.thestreet.com/_yahoo/tech/scottmoritz/10089533.html
UPDATE: Hi3G's '3' Unveils First 3G Services In Sweden
Monday May 5, 9:57 am ET
(This updates a story that moved at 1208 GMT, with additional details and analyst comments.)
STOCKHOLM -(Dow Jones)- Hi3G Access AB, the Nordic start-up telecommunications operator backed by Hutchison-Whampoa Ltd. , became the first Swedish carrier to offer 3G services Monday, saying it is targeting the top fifth of the Swedish mobile subscriber base.
"We know the tariffs here will appeal to about 20% of the people," Chief Executive Chris Bannister said at a news conference as the operator unveiled its initial subscriber packages, which analysts described as aggressive.
The Swedish operator, like others in Europe backed by Hutchison, is using the '3' brand.
Hi3G, in which Swedish investment group Investor AB has a 40% stake, faces a sizable challenge in Sweden, where four of five residents already has a mobile subscription.
In order to succeed, '3' will have to wrest customers away from the country's three current operators, market leader TeliaSonera AB's Telia , Tele2 AB's (TLTOB) Comviq and Vodafone Sweden, a unit of Vodafone Group PLC that also focusses on corporate and high-end private subscribers.
Hi3G, like Hutchison's other European start-ups, is counting on its video and multimedia services to distinguish it from its competitors.
Analysts said Hi3G is off to an aggressive start. "These are pretty low prices," said Sven Skoeld, an operator analyst at Hagstroemer & Qviberg in Stockholm. "It appears to me that they are being more aggressive than they've said before."
He added, though, that despite the company's talk of video, it is going to have to compete effectively with the established operators on voice services if it is to be successful. "That will be the key service for a number of years, if not for the whole future," he said.
Bannister said Hi3G expects to break even, before interest, taxes, depreciation and amortization, within four to five years. He declined to predict how quickly Hi3G would add subscribers, saying only that the company expects " thousands" in Sweden by year-end.
A shortage of handsets from supplier NEC Corp. , though, is likely to slow subscriber growth. Because of this services are being offered initially only in the Stockholm, Gothenburg and Malmoe areas, Bannister said.
"Demand exceeds our supply of handsets," he said. "Only when things are right there will we really open up across Sweden."
Hi3G began taking orders for handsets Monday, promising to deliver them within 31 working days. Around 5,000 people who have expressed interest will get handsets over the next few weeks, Bannister said.
Hutchison has already launched 3G services in Italy and the U.K., and Bannister said the demand for handsets in Italy, in particular, was crimping Hi3G's supply.
In addition to NEC, the Hutchison group as a whole has also ordered 3G handsets from Motorola, but Hi3G in Sweden has left the U.S. phonemaker out of its initial lineup after deciding Motorola's initial model doesn't meet the standards "that Swedish consumers require for video- and location-based services," Bannister said.
Bannister said Hutchison continues to talk to other handset makers, including Sony Ericsson and Nokia Corp. .
Skoeld said Hi3G will probably have to deal with a range of technical problems, particularly with the handsets, in the early going.
Until its own network is complete, Hi3G will offer voice coverage in areas outside its network through a roaming agreement with Vodafone Sweden, Bannister said. The agreement, though, doesn't include mobile Internet services so Hi3G subscribers won't be able to send picture messages when using Vodafone's network, he said.
In addition, subscribers moving from 3's network to Vodafone's will have their voice calls disconnected, he said, adding that he didn't think that would be a big problem because Hi3G is building out its network so quickly.
Hi3G currently has a 3G network covering about 50% of the Swedish population, he said, predicting coverage would increase to around 70% by the end of the year.
A Stockholm analyst, who declined to be named, said Hi3G's subscriber packages may confuse customers. The monthly fees are low, the analyst said, but '3' subscribers will have to pay an additional, small per-minute fee when they call subscribers of another wireless operator - something that will happen frequently early on, since '3' is starting without a customer base.
Bannister said the initial subscriber packages will be followed by others targeted at smaller groups, such as sports fan and heavy news consumers.
Company Web site: http://www.tre.se
RealNetworks goes mobile
By Bambi Francisco, CBS.MarketWatch.com
Last Update: 10:22 AM ET May 5, 2003
SAN FRANCISCO (CBS.MW) - RealNetworks, which claims more than 1 million paying subscribers viewing or listening to content on computers using its programs, is extending that business to mobile phones as well.
But don't expect to see paying subscribers to this service until later this year.
RealNetworks (RNWK: news, chart, profile) announced Monday its RealOne Mobile Media Guide, which is essentially its mobile version of content offered to consumers over computers.
Real's content partners for its mobile business include Capitol Records, CNet Radio Direct, FoxSports.com, IFilm, NPR, PGA Tour, Sporting News Radio, Triggerstreet.com and Virgin Records.
Real's move to get a mobile subscription business underway comes a few months after Yahoo (YHOO: news, chart, profile) said it was starting a subscription business -- Yahoo Platinum -- which essentially competes against Real. Real is also battling Microsoft's (MSFT: news, chart, profile) Media Player for desktop supremacy.
To this end, Real is moving aggressively to capture the mobile market.
"Wireless is the most important source of new revenue for us," said Dan Sheeran, vice president of RealNetworks, in an interview with CBS.MarketWatch.com.
Of course, the mobile business is new and therefore the revenue is relatively tiny. RealNetworks' content partners don't pay Real to be on its mobile guide, nor does Real pay the content providers. At some point, however, that will have to change. If Sheeran's words are any indication, Real will likely be paying for that content one day. "We currently don't pay the content providers," said Sheeran.
At the moment, consumers can already access Real's mobile guide on Nokia's (NOK: news, chart, profile) 3650 and Pocket PC devices. The wireless access providers are AT&T Wireless, Cingular and T-Mobile. Most carriers buy the servers, but Real can also outsource the use of the servers.
It is through these relations that Real makes some money.
The phone makers, like Nokia, license Real's client software while the carriers license Real's servers. The carriers then charge consumers for minutes used to access the content. But later this year consumers will have to pay a subscription. At the moment, Real is unclear what the subscription price will be, said Sheeran. Later this year, Siemens and Samsung products supporting the RealOne Mobile Media Guide will be available.
If Real's success on the computer is any guide, consumers will change their habits and begin paying.
And that's Real's biggest challenge: conditioning consumer behavior.
It may be a challenge to convince a consumer that he or she needs on-demand news from NPR, when there is always free radio. The movie guides also have a limited selection of movie trailers for consumers to see, and there is no search feature to make it easier for someone to find a movie. But those will come in time, said Sheeran.
Handset Sales on the Rise, Smartphones Soar
49 minutes ago Add Business - NewsFactor to My Yahoo!
Jay Wrolstad , Wireless.NewsFactor.com
Handset manufacturers apparently have weathered the global economic storm, enjoying healthy sales during the first quarter of 2003, according to a report from IDC. Sales of converged voice and data devices were particularly strong as consumers appear ready to embrace the next generation of wireless (news - web sites) communications hardware.
• Sony Ericsson Set To Launch New Bluetooth Phone
• First Voice-Enabled Palm PDA Hits Market
• Why the Smartphone Is Not Catching On
According to IDC, global handset shipments grew by 16.6 percent compared with the year-ago period, reaching 107.6 million units. Sales of converged, or "smartphone," devices, a relatively new category, were up a whopping 438 percent over the first quarter of 2002, totaling 1.7 million units.
Compelling New Features
The addition of color screens, digital cameras and a plethora of new applications and functions are driving the market. "Virtually all of the major handset manufacturers introduced new models during the quarter, and consumers are being drawn to upgrade their phones," IDC research analyst Ross Sealfon, a report author, told NewsFactor.
Nokia (news - web sites) (NYSE: NOK - news) maintained its position as top dog in overall global handset sales during the quarter, selling some 38 million devices and holding a 35.5 percent market share, more than double that of second-place Motorola (NYSE: MOT - news) (15.5 percent) and well above Samsung (12.3 percent) and Siemens (NYSE: SI - news) (7.4 percent), which rank third and fourth, respectively. LG Electronics replaced Sony Ericsson (news - web sites) in the top five.
Sony Ericsson Rises
In the converged device space, Nokia has a 57 percent market share, head and shoulders above second place Sony Ericsson (11 percent) and third-place Motorola (7.4 percent). According to Sealfon, the rapid expansion in this market can be attributed to new, more attractive form factors, better operating systems and increased functionality.
Particularly noteworthy, the analyst said, is that Sony Ericsson vaulted into second place in the most recent quarter after not appearing on the converged device list a year ago.
During the quarter, a number of new Palm (Nasdaq: PALM - news) OS, Pocket PC Phone Edition, Windows-powered Smartphone, and Symbian OS-based converged handheld devices were introduced to the market, IDC reports, joining a list of new products now shipping. These offerings are expected to push market expansion through this year and beyond.
Nokia in the Vanguard
"Nokia is leading the charge. Their share is so significant that what they do drives the market," said Sealfon. He cited the introduction during the past three months of the N-Gage mobile gaming device, the 3300 music device and 6800 messaging device as evidence that the company continues to break new ground in the industry.
The company has done a good job of anticipating and delivering what consumers want in a variety of hardware packages, Nokia spokesperson Keith Nowak told NewsFactor. "There has been a lot of interest in new phones with color screens and with imaging capabilities," he said, noting the company's sales were up 13 percent from the year-ago quarter.
Nowak compared the introduction of such new features and the addition of data-enabled devices to the evolution from analog to digital technology in the wireless industry. "This is a recent development, and people now want to move from voice-centric to voice and data devices," he said.
Strong Year Ahead?
Significant growth in the converged-device market was expected, Nowak said, since there were few such products available a year ago. "Nokia has made an effort to add the features consumers want, such as games, imaging and media players ... while not complicating things by offering too much in each device," he observed.
IDC analysts were somewhat surprised by the first-quarter sales figures. "The biggest story is that the manufacturers rolled out a lot of devices that were very compelling," Sealfon said, "which is an indication of a strong year ahead."
Nokia and Lexus Integrate Wireless Connectivity Into Luxury Vehicles
Monday April 7, 8:09 am ET
- Leading Companies Combine Their Respective Expertise in Mobility to Create Lexus Integrated Phone System -
IRVING, Texas, April 7 /PRNewswire-FirstCall/ -- Nokia and Lexus today announced the availability of the Lexus Integrated Phone System, an optional mobile communications solution that allows owners of select Lexus vehicles and a Nokia 6310i phone to seamlessly integrate the phone into their Lexus audio/navigation system for the added convenience and security of wireless connectivity. The Lexus Integrated Phone System is available for buyers of new 2003 Lexus SC 430, LX 470, GS 300, GS 430 and LS 430 models immediately.
The Lexus Integrated Phone System for Nokia phones consists of a Nokia-supplied control unit and cradle that is engineered to be easily installed by the Lexus dealer. The Nokia control unit was designed in conjunction with Lexus to seamlessly interface with the on-board steering wheel command module or optional touch-screen navigation system. It provides a full wireless communications suite that can be easily accessed through the existing Lexus user interface. After installation, the Lexus Integrated Phone System offers intelligent, integrated and invisible wireless connectivity.
Owners of vehicles equipped with the Lexus Integrated Phone System need only to place their Nokia 6310i phone into the hidden center-console-mounted cradle and start the ignition to activate the system. The phone transfers its phonebook to the dashboard-integrated color screen. Individual names can be accessed and dialed via touchscreen control on navigation system equipped vehicles. Additionally, up to 20 of these transferred numbers can be assigned a voice tag, allowing users to make calls with voice commands. While the Nokia 6310i phone is in the cradle, it is continuously charged and operates in handsfree mode with audio routed through the high-quality speakers of the Lexus sound system. In addition the Lexus Integrated Phone System has a unique capability to initiate calls to local points of interest indicated on the navigation screen by simply touching the screen.
"Whether taking a trip locally or across the country, the convenience and peace of mind that comes with being connected wirelessly will make the Lexus Integrated Phone System an exciting option for many Lexus buyers," said Razvan Olosu, general manager, Nokia Smart Traffic Products. "After successfully providing in-vehicle mobile communications solutions to automobile makers in much of the world, we are pleased to work with Lexus to now extend our product line to the United States market."
About Nokia
Nokia and Lexus Integrate Wireless Connectivity Into Luxury Vehicles
Monday April 7, 8:09 am ET
- Leading Companies Combine Their Respective Expertise in Mobility to Create Lexus Integrated Phone System -
IRVING, Texas, April 7 /PRNewswire-FirstCall/ -- Nokia and Lexus today announced the availability of the Lexus Integrated Phone System, an optional mobile communications solution that allows owners of select Lexus vehicles and a Nokia 6310i phone to seamlessly integrate the phone into their Lexus audio/navigation system for the added convenience and security of wireless connectivity. The Lexus Integrated Phone System is available for buyers of new 2003 Lexus SC 430, LX 470, GS 300, GS 430 and LS 430 models immediately.
The Lexus Integrated Phone System for Nokia phones consists of a Nokia-supplied control unit and cradle that is engineered to be easily installed by the Lexus dealer. The Nokia control unit was designed in conjunction with Lexus to seamlessly interface with the on-board steering wheel command module or optional touch-screen navigation system. It provides a full wireless communications suite that can be easily accessed through the existing Lexus user interface. After installation, the Lexus Integrated Phone System offers intelligent, integrated and invisible wireless connectivity.
Owners of vehicles equipped with the Lexus Integrated Phone System need only to place their Nokia 6310i phone into the hidden center-console-mounted cradle and start the ignition to activate the system. The phone transfers its phonebook to the dashboard-integrated color screen. Individual names can be accessed and dialed via touchscreen control on navigation system equipped vehicles. Additionally, up to 20 of these transferred numbers can be assigned a voice tag, allowing users to make calls with voice commands. While the Nokia 6310i phone is in the cradle, it is continuously charged and operates in handsfree mode with audio routed through the high-quality speakers of the Lexus sound system. In addition the Lexus Integrated Phone System has a unique capability to initiate calls to local points of interest indicated on the navigation screen by simply touching the screen.
"Whether taking a trip locally or across the country, the convenience and peace of mind that comes with being connected wirelessly will make the Lexus Integrated Phone System an exciting option for many Lexus buyers," said Razvan Olosu, general manager, Nokia Smart Traffic Products. "After successfully providing in-vehicle mobile communications solutions to automobile makers in much of the world, we are pleased to work with Lexus to now extend our product line to the United States market."
About Nokia
Good mention of IDCC and analysis
http://www.thestreet.com/_yahoo/markets/paulalace/10077928.html
BILL - GREAT PERSPECTIVE! EOM
Reuters
Intel funds four more wireless companies
Sunday March 9, 5:59 pm ET
SANTA CLARA, Calif., March 9 (Reuters) - Chipmaker Intel Corp. (NasdaqNM:INTC - News), which is set to launch its Centrino technologies for wireless computing this week, will announce on Monday that it has provided funding to four new companies that provide wireless software and services.
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Financial terms were not disclosed.
Intel has invested in seven such companies since it announced plans in October to spend $150 million on companies developing so-called Wi-Fi, or wireless networking, technology. More than $25 million has been invested in at least 15 companies since 1999, the Santa Clara, California-based company said.
The latest recipients of Intel's largess are rovingIP.net, Vivato, Broadreach Networks Ltd., and Pronto Networks.
Bellevue, Washington-based rovingIP.net offers inter-network services to wireless service providers and network operators. Vivato is a Wi-Fi switch manufacturer in San Francisco. London-based Broadreach provides "pay-as-you-go" wireless broadband Internet access. Pronto, of Pleasanton, California, provides carrier-class operations support systems to help Wi-Fi service providers deploy so-called "hotspots," or places with wireless equipment.
The companies' products and services will complement Intel's Centrino wireless package for laptops, which will be unveiled on Wednesday. Centrino is composed of the Banias microprocessor, an accompanying set of chips and wireless networking software.
In December, Intel, AT&T Corp. (NYSE:T - News), International Business Machines Corp. (NYSE:IBM - News) and two venture firms formed a new company, Cometa Networks, that will create a nationwide network of wireless broadband hotspots in stores, restaurants, hotels, gasoline stations and other locations.
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Sony Ericsson Unveils the Visually Powerful T610 Mobile Phone with Integrated Camera
Tuesday March 4, 10:04 am ET
T610 Takes Mobile Imaging to Next Level with Phone Flash Accessory
LONDON--(BUSINESS WIRE)--March 4, 2003--Today, at thirty events around the world, Sony Ericsson took mobile imaging to the next level by unveiling the T610 - a 65K colour screen mobile phone with inbuilt digital camera.
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The T610 is the first Sony Ericsson product with QuickShare(TM); meaning that the products offer the easiest, fastest and smartest way to share images with friends, family or colleagues.
The T610 utilizes unique textured materials and a sophisticated finish in its design, making it visually powerful and stylish to look at. The T610 will start shipping in Q2 in Europe, Asia and North America.
With the help of the imaging capabilities in the T610, consumers can easily share pictures between the phone, a PC and other consumer devices - either locally over Bluetooth or cable, or across the mobile phone networks with MMS or e-mail. With its large 65,536 colour screen and integrated digital camera, the T610 is a powerful imaging and messaging phone. With QuickShare, the highest priority is on making imaging applications very easy to use for consumers, while driving application uptake and data revenues for operators. It only takes a few clicks to take a picture and send it with the T610.
The T610 features a new user interface with 12 animated icons and rich colors, which further adds to the ease-of- use philosophy of QuickShare. Hotlinks in the menus give direct access to services/functions such as downloadable/downloading games. The T610 supports the Java and Mophun (C++) platforms for downloadable games, and also offers the possibility of playing games with other people via Bluetooth wireless technology. Excellent graphics, polyphonic sound, force feedback and a joystick further adds to a great mobile gaming experience.
Phone Flash MPF-10
For the first time, also a Phone Flash accessory will be available for the T610 camera phone, enabling pictures to be taken in dimly lit environments. Used together with the T610, the Phone Flash accessory makes it possible to take good pictures even in poorly lit surroundings, such as a nightclub or bar. The MPF-10 is simple to attach, and very easy to use; to take a picture just press the shutter button on the flash. Another advantage of using the flash accessory is that it reduces the problem of red-eye.
"With the T610, we offer a very strong imaging phone which also has a groundbreaking sleek and light weight design which utilizes aluminum and sophisticated color options," says Stefan Streit, Vice President Product Marketing at Sony Ericsson. "We have seen a great uptake of mobile imaging among consumers and with the introduction of the Phone Flash accessory we are now in a position to take this hit mobile phone application to the next level."
The T610 also features the unique Melody Composer, for creating MIDI songs which can be used as ring signals. This application lets the user select pre-recorded musical loops to compose a song. With the Melody Composer it is easy and fun to create and edit polyphonic ring signals using tracks containing ready- mixed drums, bass-lines and melodies. It is a new type of technology and user interface that has never been used in a mobile phone before.
The T610 measures 4.01 x 1.73 x 0.74 inches and weighs 3.35 ounces. For the Chinese market, the T618 will be launched in Q2 and for North America the T616 will feature GSM 850/1800/1900 frequencies.
Sony Ericsson Mobile Communications AB offers mobile communications products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM Ericsson (NASDAQ:ERICY - News) and Sony Corporation, (NYSE:SNE - News), the joint venture continues to build on the success of its two innovative parent companies. Sony Ericsson creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company's management is based in London, and has 4,000 employees across the globe working on research, development, design, sales, marketing, distribution and support.
Any product features, specifications or statements in this document that are not historical facts are forward-looking and involve risks and uncertainties. Actual product features, specifications or forward-looking statements are subject to change.
For further information, please visit: www.SonyEricsson.com
--------------------------------------------------------------------------------
Contact:
Sony Ericsson
Nicky Csellak-Claeys, 919/472-7340
nicky.csellakclaeys@sonyericsson.com
Mobiles 'let you control your life'
By Jane Wakefield
BBC News Online technology staff in Cannes
Mobile phones are used by people to decide how and when they communicate with the rest of the world, say researchers.
The findings are the result of a three-year study into the evolution of consumer mobile behaviour, entitled Me, My Mobile and I, by a team at Lancaster University in the UK.
The report, presented at 3GSM World Congress in Cannes, suggest that mobile devices are increasingly offering people a way to control their relationships, location and self-image.
This idea likely to provoke mixed feelings of fear and excitement in operators determined to exploit the potential of mobiles by offering a wide variety of services.
Reality TV to go
The UK study looked at how people actually used their mobiles and how this could be built upon for future phones.
The mobile: An essential bit of kit
Researchers found that mobile phones are primarily devices of control and censorship, allowing people to decide the time and context with which they communicate with the rest of the world.
"The mobile phone is our own form of reality TV, the single most important device to let people control their relationship with others and to self author their image and lives," said Michael Hulme, Research Fellow at Lancaster University and Chairman of the Teleconomy Group.
Young women told researchers that mobile phones allowed them to take control over events such as walking home late at night, offering them the comfort of a friendly voice in the dark.
Older women said their mobiles allowed them to keep track of their husbands, while students told researchers that texting provided the perfect solution to a boring lecture.
Children used their mobile phones to ask their friends for advice. They also tended to have strict views on the use of mobile, seeing parents using text messaging as inappropriate.
Controlling spam
This double sense of control and censorship is likely to increase with the advent of multi-media messaging, offering people the ability to demand photographic proof of another's location.
Losing your mobile seems to equate to losing control
Michael Hume, Lancaster University
"There will be increased surveillance of others while we become more elusive ourselves," said Mr Hulme.
The context of mobile use is crucial if operators want to provide services that people will actually want, said Mr Hulme.
There is a particularly important lesson for the burgeoning industry of mobile spam - sending unsolicited text messages to promote a variety of services.
It can work but it is crucial that such messages are sent in the right context and getting this balance right is extremely difficult, said Mr Hulme.
"There is an ever-growing acceptance of push content but this acceptability is linked to context and if the context is wrong the message will not be returned to", he warned.
Better tools to allow people to sort content and separate spam from their personal text messages will be important in the future, he said.
Essential device
Another key finding of the study was that text messaging was not the emotional form of communication that operators assume it to be.
"The evidence shows that texting is a form of emotional censorship because they are composed and clearly structured," said Mr Hulme.
For operators just beginning to sell multi-media messaging as a new way of expressing emotion, the message is clear - voice is still the most emotive form of communication.
But the good news for the mobile industry is that mobile phones are likely to remain and increasingly become the one device people are unwilling to live without.
"Losing your mobile seems to equate to losing control," concluded Mr Hulme.
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Snow - I have never made my investments based on a "smoking gun" (read paid licenses) I would have to pay a price more than I would like/could afford. This is one more piece in the TOTALITY OF INFORMATION to date that I continually reevaluate.
I have been rewarded more than not by trusting managements and taking them at their word (regardless of their option activity).
Although the timetable for the reward keeps getting pushed back, while frustrating and difficult, has not diminished my enthusiasm or beleif that it will happen. IMHO
NEIVES - That seems to support the fact that a settlement has or is about to occur as I would think E would need IDCC's "essential" WCDMA patents to fulfill that contract.
Ken- Those were my exact feelings! EOM
CHINA/IDCC- THANKS TO ALL WHO RESPONDED - EOM
IDCC/CHINA ARTICLE - COMENTS?
Didn't get a reply re this on the old board. Would appreciate any thoughts. Realize Neives posted it much earlier but could not find any comments re same. Jim - I like the new site.
Market Report -- Story Stocks (QCOM, IDCC, CHL, RVG)
January 02, 2003 10:56:00 AM ET
Ahead of The Curve: China's 3G Infrastructure There was a time when the 3G cellular phone standard was viewed as the turbo-charge for the telecom industry. Qualcomm (QCOM) in particular was seen as the primary benefactor, but InterDigital Communications (IDCC) was also seen as a big 3G beneficiary. The way things have turned out, however, is entirely different from the way US investors viewed the potential in China just two years ago.
China has no wired phone infrastructure. Their first phone system will be cellular. The thought of an unpenetrated two billion person market is more than most people in the hungry telecom market is more than most can handle. The problem, however, is the Chinese government and time. It is becoming increasingly clear that China will not allow western companies to build this infrastructure for their country. It will be built and owned by Chinese companies. Furthermore, it might not even be compatible with WCDMA, the European version of 3G, or with CDMA2000, the Qualcomm 3G standard, according to a Reuters news story today which quotes Li Shihe of Datang Mobile Communications Equipment. As if that weren't enough, the rollout of the Chinese system will not take place until 2004 at the earliest.
All of this adds up to one thing: investment premises for non-Chinese telecom companies based on an explosion of revenues in the Chinese market are ill founded. Even arguments for royalty payments on essential patents on the 3G system are probably misguided as investments in western telecom companies. The illegal copying of entertainment content and software is rampant in China with only token attempts to enforce payment of royalties to US companies. The same will probably occur with technology patent infringement, if it occurs. Investment premises for Chinese based telecom companies might be developed, but investments in individual foreign growth stocks are about as risky as it gets, even when the stock trades on NYSE, such as China Mobile (CHL). It is unclear if China Mobile will be forced to compete with China Telecom, its parent before the companies were split apart, or whether it can maintain its current state-granted monopoly. There is a certain fickleness to Chinese telecommunications policy that must be recognized as a risk if you choose to pursue Chinese company investments. They are, after all, still state-owned companies, despite having publicly traded shares and western partners.
Nevertheless, the one thing that seems to be getting increasingly clearer as time passes is this: China will not let western companies capture the Chinese wireless market. They will accept slower rollouts and possibly inferior quality service in exchange for building this industry themselves. If you put yourselves in their shows, it makes perfect sense. But if you own US telecom firms and the "unpenetrated" worldwide market is part of your investment premise, you should probably rethink your investments. - Robert V. Green
Briefing.com is the leading Internet provider of live market analysis for U.S. Stock, U.S. Bond, and world FX market participants.
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(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)