Replies to post #2999 on Qualcomm Inc (QCOM)

[sylow]

>> Almost all of QSI's investments have been made in an effort to obtain a foothold in one way or another to advance CDMA. Is this wrong? <<

My two cents added also:

1) A few years ago, when these investments were made, many of CDMA's competitors were spreading cash quite thickly. It would have been very hard for CDMA interests to sit idly by.

2) Many other companies have had similar financing failures. Big ones in the news are obviously DoCoMo/ATT, DT, MOT/NOK in Turkey, maybe Hutch, etc. I betcha there are lots more "150% financing" stories sitting out there waiting to pop. (Though they might be more successfully swept under the rug.)

Come to think of it, since there are approximately two small WCDMA networks commercial right now, a lot of those vendor financing contracts should be investigated by some journalist....

[kechuwa3]

Just remember, when Qualcomm got into Vesper there was no CDMA in Brazil. Now there is. Would there have been CDMA in Brazil if Vesper hadn't been started? That is the question that has to be answered before the value of Vesper can be said to be a mistake.

[carranza2]

Hey, there are a few bright spots, rich. As the article Eric has posted notes, we've got Q's financial connections to Issa through Wingcast to rely on so that Q can monopolize that huge and lucrative Iraq market.

Probably make a few quarters for us.

LMAO!

[richbloem]

Looking at the CC, it seems Q management agrees with my thoughts.

I will close with one comment on our QSI segment. The financial markets for telecommunications companies, particularly in emerging markets, have been extraordinarily tough in the last two years. And this has, indeed, hit the value of our investments. However, these investments have achieved their strategic goals in driving the CDMA market in Latin America, Europe and other parts of the world. We believe that the need to make new investments is diminishing rapidly, and this is reflected in our estimate of net cash outflow for QSI of $150 million for fiscal '03.