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Friday, June 23, 2006 3:40:52 PM
If that's correct, will Q recover all or part of the loss by increased handset sales by other licensees? Providers can't simply say "Okay, now we're GSM." they have to service their users. I think Q will get that back.
Will Nokia recover all or part of their loss by manufacturing more GSM handsets and selling them to existing GSM cellular providers. If NOK is to sell more they must take market share away from other manufacturers, and handsets appear to me to be so commoditized that the only way NOK can substantially increase their handsets in use would be to reduce prices. The famous low W-CDMA royalty cabal will have to reduce its royalty to about 9%.
I admit to having a Nokia 2G handset, even though I have an anti-NOK bias. It happened when Sprint stopped servicing my 1G handset I'd had for about 5 or 6 years--they no longer even had the cables to reprogram. I argued with a store clerk for about a half hour that Sprint had a contract with me to provide cellular service and thta the cellular service had abandoned my phone, and that I would neither pay extra nor extend my contract to get a phone they could serve. They--in short--were in breach of the contract. Finally he reached under the counter and slammed a box down (without breaking the glass, at least) and said something like, "Here!" At home I found it was a Nokia, and that's how I came to break the Trading With the Enemy Act.
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