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To: Maurice Winn who wrote (16010)10/6/1998 12:34:00 AM
From: Joe NYC
   of 152425
 
Maurice,

OT

first, the USA people would think that the ants of Asia are irrelevant to the real world of the most mighty, free, glorious and amazing humans who have ever walked the planet since Brontosaurus.

I am not sure what you are basing this on. People in the US don't this condescending attitude towards the Asians for 2 reasons:

1. They don't know where Asia is
2. It's spelled AntZ

Joe

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To: marginmike who wrote (16030)10/6/1998 12:40:00 AM
From: Ruffian
   of 152425
 
marginmike, All; Gilmore of MOT CDMA Views;


From the September 14, 1998 issue of Wireless Week

Gilmore: Motorola Missed TDMA/CDMA Curve

As PCS '98 approached, Wireless Week Technology Editor Brad Smith spoke with Merle Gilmore, president of Motorola Inc.'s Communications Enterprise Group.
The wide-ranging discussion touched on where CE is headed, the status of the industry, the importance of data, 3G and technology in general.

Wireless Week: You have said you were late introducing code division multiple access and time division multiple access digital handsets. What were the reasons for
this and have they been corrected?

Merle Gilmore: I think the biggest issue there for us was basically the breadth which our portfolio covers in handsets ... I think the simple answer is that we didn't
have enough resources in place to handle the magnitude of the issue for us. We obviously also didn't forecast how quickly it would move. The last 12 to18 months,
the market here, especially in the United States which is one of our larger markets and certainly a market where CDMA and TDMA come into play, had moved very
substantially away from analog and toward digital. We just plain and simple didn't have enough resources in place early enough to enable us to get in front of that
curve. That is a problem that is right at the top of list of problems we are addressing with the Enterprise.

Last year we made 65 million wireless devices, pretty close to what we think were about half the wireless devices built in the world when you add together what we
manufacture in cellular handsets, paging and two-way radio. In that capability we've got lots of resources.

WW: One of the pioneers of handset manufacturing, Oki telecom, recently withdrew from the business. Is this the first in a number of consolidations in handset
manufacturing or are marginal companies going away?

Gilmore: It's actually a trend we've seen all along. People come and go in this marketplace. I think we still have a very long way to go in cellular handsets, but as we
enter a more mature phase in this marketplace we will in fact see some consolidation of players in the industry.

WW: Switching to another topic now: data. Many analysts believe that telecommunications generally is becoming data-centric rather than voice-centric. What is
Motorola looking for in data?

Gilmore: What we see is the overall telecom and information-technology industries in a convergent mode right now. First of all, we see a convergence of voice and
data. We also see a convergence of wireline and wireless. At the same time, the Internet has fundamentally changed the world forever. As data communications
focuses on the kinds of reliability capabilities that telecom traditionally provided, technologies like voice-over IP develop. What we will be looking at in our
telecommunications and data communications systems--wireline or wireless--is infrastructure that will move bits. Some of those bits will be used for data and others
will be used for voice. There will always be a strong need for both, but without question, we'll see the networks converge.

That trend is one of the primary trends that we've based a lot of what we've been doing with the new organization at Communications Enterprise.

WW: Can you explain what CE's vision and role may be? What do you have in the pipeline?

Gilmore: First of all, I think virtually all of our products have to be responsive to this convergence question. We're preparing ourselves to be responsive in virtually
all of the areas of our business--whether it's in the Personal Communications Sector, where we produce most of our high-volume handsets, or our Networks
Solutions Sector, where we produce our infrastructure, or the Commercial, Government and Industrial Solutions Sector, where we're trying to provide more
complete integrated solutions to our vertical market customers.

At the same time, we've put into place an Internet and Networking Group in which we've pulled together some of the leading-edge application software capabilities
and services that will be fundamental to really driving this market ... In addition, we're ... focusing on applications and services.

WW: After the loss of the PrimeCo Personal Communications LP contract there had been some criticism about Motorola's software capabilities. Does this address
that in particular?

Gilmore: Yes. Certainly to the extent that the Internet Networking Group will be responsible for defining and developing an architecture and software platform that
will be repeated and reused throughout the enterprise ... We'd be the first ones to admit we had a problem with a very important customer in PrimeCo. We
acknowledged that problem and responded. I think we did so obviously later than the customer wanted. We felt at the time the customer made the decision, that we
were making good progress, that we were becoming equivalent to the other sources for the product they had at that time. It certainly had us focus on our current
product platform. With the customers to whom we are selling that platform today, we've made huge progress in meeting those customers' expectations.

WW: Do you feel that if that situation occurred today that the result might be different?

Gilmore: Yes. I think without question that the products organization has made great strides in dealing with the issues at the core of that situation. At the same, time
I'd like to add that we created a new group within the Communications Enterprise called the Global Telecom Solutions Group. One of the things that we've done
with the Communications Enterprise is that we've created it with its first primary focus being on three very important customer segments. One being consumers; the
other being commercial, government and industrial users of telecommunications and information technology; and the third being the global wireless network operators
of the world.

The focus on the customer is a very key tenet of the new organization. Global Telecom Solutions Group will in fact be an entity that first will provide one voice to
those customers for all of our telecommunications equipment; it will also give us a real focus on those customers.

WW: You mentioned that Motorola has been a technology leader, something that everyone recognized. Can you tell us who the key Motorola people in technology
will be going forward?

Gilmore: Well, I have 12,500 engineers in the Communications Enterprise, and in that group of engineers there are just wonderful people, people who have created
the FLEX paging protocol and made it a de facto standard, created one of the most complex digital communications systems in the world in the [integrated digital
enhanced network] technology, certainly the people who have dreamed up and invented the Iridium satellite system, the ones who are working to create the
Teledesic opportunities for us.

We were one of the very early participants in [global system for mobile communications]; much of the GSM technology is Motorola technology. We've been out
there in CDMA in infrastructure; we've gotten over $6 billion in orders in CDMA infrastructure; we've built three nationwide networks in Japan, one of the most
difficult markets to compete in. That's just going through our major accomplishments.

WW:. You have brought in some stars from the outside, such as Bo Hedfors (former president and CEO of Ericsson Inc.'s U.S. Division, now president of
Motorola's Network Solutions Sector). Do you envision going outside the organization to lure more people of his caliber in the future?

Gilmore: Sure. I think Bo is evidence that we are doing that. He's the most recent and one of the most visible examples. We think he's going to add a very important
dimension to our leadership. We've very happy that not only were we able to find someone of Bo's talent, but also we were very happy that when Bo looked at what
we're doing, he agreed that this was the right place to be.

WW: Let me ask you about 3G. In the standards debate that is going on right now, Motorola hasn't taken a high-profile public position. Is that accurate, and could
you tell me what Motorola's position is?

Gilmore: I think that may be a U.S.-centric view of the participation of the players in the 3G world. 3G is an enormously important and very complex issue for the
global wireless telecommunications industry. We are on record as, one, saying that the 3G standards have got to be customer driven; there are lots of issues out there
in serving those customers, and by customers I mean first, of course, the network operators and also the consumers who will use the 3G systems.

We believe that whatever solutions are put in place have got to be driven by optimizing the benefits to those customer segments. We also have a very diverse, strong
global position with customers all over the world. Certainly we're one of the major players in GSM; we're also one of the major players in [Interim Standard-95]
CDMA. We are on record as saying we would like to see the standards that have been proposed around the world converge; we believe there is enormous benefit
to the global telecom user if the 3G standards could, in fact, converge to a global standard.

But that convergence must be driven by this sensitivity to the customers' needs and to all the [consumers'] needs. There's a huge installed base of GSM in the world,
and there is a growing installed base of IS-95 CDMA and U.S. digital TDMA and other systems of the world. We believe the solutions must be driven by somehow
integrating the best solutions for all those customers.

WW: The debate has come down to a discussion of wideband CDMA vs. cdma2000. Do you see the possibility of these differences being resolved and a
convergence being reached?

Gilmore: I believe the best chance of the global industry seeing that convergence will, in fact, be in the major players, whether they're the network operators or the
equipment manufacturers, and whether they will focus on ... serving customers' needs. If that happens, I believe we will see a convergence. If there are going to be
separate standards with wideband CDMA and [cdma2000], we are on record as saying we will participate in both. We think that because of our position in GSM
and our position in IS-95 we are prepared to do so. We, however, do believe that it would be better for the industry and better for the customer if there would be a
convergence of those standards.

WW: A question about paging. Motorola has always been a dominant force in paging. The paging marketplace is changing. Can you take a look ahead at what's
happening in paging, particularly with narrowband?

Gilmore: In the world of convergence, the sort of solutions that worked in previous situations are changing. We see the functionality of cell phones, pagers and
two-way radios really being integrated and the distinctions blurring between these systems.

To that end you see paging, for example, evolving to instead of just being about alerting people, it is now about messaging, and that has evolved now into two-way
messaging. Once the high-speed capability that leads to robust messaging service after paging, and once this integration of voice and data happens, you can see voice
potentially also being an application for paging. Certainly in developed markets, this sort of narrowband [personal communications services] view of the evolution of
paging will be an important element to paging's success.



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To: Joe NYC who wrote (16032)10/6/1998 12:43:00 AM
From: Ruffian
   of 152425
 
All, MOT & NOKIA Views on CDMA; READ DOWN;


From the September 21, 1998 issue of Wireless Week

Two Wireless Titans: Who They Really Are, Where They're Leading Us

In their first-ever interviews with any U.S. wireless industry publication, Motorola's Chris Galvin and Nokia's Jorma Ollila talked about issues that
mutually concern them. More important, they discussed their ambitions and aspirations, strategies and management styles.

Links to related articles

By Judith Lockwood

Chris Galvin and Jorma Ollila have some things in common. Both are striking, active men in their late 40s. Both are approachable CEOs of global wireless
manufacturing companies. Both are convinced of the long-term growth potential of wireless worldwide.

But the similarities may end there.

Galvin, at the top of Motorola Inc. headquartered near Chicago, plays a reasonable round of golf and proudly displays a photo of the 13-pound bonefish he caught
while flyfishing in the Florida Keys. Ollila, head of Helsinki's Nokia Corp., prefers a pounding tennis game and the Scandinavian practice of jumping between a sweat
in a hot sauna and a dive into a chilly lake.

Galvin runs an electronics amalgam with $29.8 billion in 1997 revenue and 144,000 employees. Nokia, which Ollila refocused from an electronics conglomerate a
few years ago to
a company aimed at telecommunications, generated $9.8 billion in sales last year and has 41,000 employees.

Galvin's critics say he is laboriously trying to turn the rudder of the QE2 simply to face the ship into the wind of the digital revolution. In contrast, Ollila is seen as
racing a speedboat that's skipping over the waves of regional economic crises and shorter product development cycles to win an ever-growing share of the wireless
market.

So who are these guys, really, and where are they taking the wireless industry?

Chris Galvin: Where's The Bold Vision?

Now 47, Chris is the third Galvin to run Motorola. His grandfather, Paul, started the company in 1928 by selling battery eliminators, and his
father, Robert, still sits on the board and advises his son.

Chris Galvin earned a masters degree with distinction from the Kellogg Graduate School of Management at Northwestern University. He
began working summer jobs at Motorola as a high school student, joined the company full time in 1973 and served as senior executive vice
president before being named CEO in January 1997.

Interviewed in his 12th-floor Schaumburg, Ill., office, Galvin deports himself quietly, with a slightly patrician bearing and a soft voice. He
takes copious notes during company meetings. Renowned as a good listener who waits until others have finished speaking before asking
questions, he doesn't hesitate to query subordinates until he's sure he understands a situation.

Galvin is struggling to restore the luster to a company tarnished by a familiar list of troubles: software and customer service problems highlighted when frustrated
customer PrimeCo Personal Communications LP issued a highly visible rebuke at an industry trade show; crises in Asian and semiconductor markets; inability to
accurately forecast demand for digital phones; and internal squabbling that has prevented Motorola from staunching embarrassing market share losses.

Galvin still clings to a goal of 15 percent revenue growth for the next five years, though he offers few specifics on how Motorola can achieve that figure; analysts
remain skeptical.

During the summer's market gyrations, triggered by regional economic woes, Motorola's stock price cratered well below its 52-week low. Although the price
rebounded with the general market, it still remains 40 percent under its 52-week high.

"What we saw happen to the markets [at the end of August] is what Motorola began to see in January," Galvin said. Conditions in certain Asian markets slowed the
growth of sales, orders and profits and put pressure on pricing. Regarding global economic crises, he added, "There are issues within our control and issues outside
of our control. We will fix everything in our control."

For starters, Galvin axed 6,200 of the total 15,000 jobs he plans to eliminate by mid-1999 and is consolidating paging and semiconductor manufacturing, a process
begun with the closing of a Puerto Rican pager factory. Last week, he halted construction of a $3 billion semiconductor facility in Richmond, Va.

In addition, he is involved in combining the company's cellular, messaging, mobile radio and other business operations into a Communications Enterprise unit designed
to respond more quickly to customer needs. Motorola veteran Merle Gilmore heads up the new organization, representing the latest of several restructuring initiatives
in the past few years.

Further, Motorola is changing the expensive, hands-on approach it used to commercially develop technologies underlying Nextel Communications Inc. and Iridium
LLC and the aborted Celestri satellite project. Instead of using the old model and becoming a carrier itself, Galvin plans to "find a very talented and experienced set
of customers" like wireless operator extraordinaire Craig McCaw and his Teledesic team "who can move the technology to the next step."

He said that in the week before his Wireless Week interview, he met with five major telecom carriers in his headquarters office, just some of the hundreds of
customers he sees annually.

There's more. Galvin is especially pleased with the M-CORE low-power, microRISC controller developed by the company's Semiconductor Products Sector. An
enabling technology for a wide range of telecommunications products, the microcontroller core is at the heart of the company's new iDEN i1000 integrated digital
handset, a bright spot in the company's sales picture. Orders for iDEN subscriber and infrastructure equipment jumped 25 percent in the second quarter.

Galvin also cites Motorola's competency in digital signal processor technology, strengthened last June by an alliance with Lucent Technologies Inc. The two
companies will collaborate on core designs, but separately market full-fledged DSPs-- chips that perform high-speed computations with voice, data and video
signals--based on those cores. The advanced DSPs will be part of wireless handhelds for surfing the Web, cellular phones with video capability and devices with
speech-recognition capability.

Whether any of these products or shifts in direction will get to the root of Motorola's problems is anybody's guess. This is a company that can't get handsets out on
schedule. Wireless carriers began receiving Motorola's first code division multiple access handsets in July, but long-awaited CDMA and time division multiple access
800 MHz versions of the popular StarTAC won't be available till the fourth quarter, giving a long lead to competitors including newer entrant Samsung Electronics
with its snappy SCH-2000.

Although Motorola is credited with superb engineering, its grip on the consumer market is tenuous. Galvin's products can be less user friendly and mnemonic than
Ollila's.

"Nokia has done a very good job of thinking of the user interface, almost placing a Windows environment on their phones," said Credit Suisse First Boston Analyst
Marc Cabi. "On Motorola's phone, 'function 4' gets you the battery level. It's more cumbersome to use."

Sensitive to such criticism, Galvin last year shifted people and money to market research. To help guide its product design and marketing, Motorola built a database
from results of 4,000 consumer interviews and the company is continuing to "study the consumer in a deeper way," Galvin said. The company also launched its
global, $100 million Wings advertising program. The initiative is meant to emphasize the freedom and information control that wireless brings to a consumer's "work,
family, social and community worlds" as Galvin described it. "We didn't create Wings as an ad campaign, but as a promise ..." he added.

But even with these changes, customers, shareholders and analysts are impatient with promises and the pace at Motorola.

For example, the initial idea for the Communications Enterprise originated two years ago in an organizational development process. Frustrated from dealing with
multiple divisions for single network solutions, "carriers told us, 'We don't want to manage Motorola, we want you to manage all of Motorola's resources on our
behalf,'" Galvin said. The question is why it took so long to do that.

If detail-oriented and technically knowledgeable manager Merle Gilmore, the new integration chief, "had been put in that role earlier, it would have saved us a fair
amount of grief," one company executive said.

Gilmore and Robert Growney, president and COO, are Motorola's "G" men, charged with making the restructure work. "They're like the junkyard dogs who latch
on to a number or a problem," the exec continued.

Chris is a good guy, but gentle, said a paging carrier CEO who has bought equipment from Motorola for decades. "I don't know if a soft-spoken person can carry
that off. Chris may be smarter, but Gilmore and Growney are steely."

Does Galvin want Motorola to continue as a technology conglomerate? Or does he prefer to refocus on what the company does well and exit businesses where it
doesn't?

"Either Galvin is not comfortable making that type of decision yet or he is still evaluating his options," Cabi said.

For example, the Semiconductor Products Sector has played a big role in Motorola's recent business problems, but Galvin isn't talking about divesting the unit, which
had $8 billion in revenue last year, down $500 million from the previous year, and is a supplier to Nokia and Ericsson Inc. Instead, he has chosen to outsource, cut
employment and trim the unit's overly broad product line. A possible reason: The company could focus on developing leading-edge chips and handset designs and let
others build handsets. One company source said Galvin is coming up to speed on the complex semiconductor business, which requires capital expenditures that
"almost defy description."

Galvin defends Semiconductor's historical role as a developer of Digital DNA, the company's moniker for embedded solutions, saying the sector creates new
business opportunities in wireless and other industries.

"If you go to the PCS '98 show, the Consumer Electronics show, the automotive show, and major telecom meetings like the recent one in Geneva, and you look
behind the plastic and steel, the enabler is silicon and software. So the opportunity for us is to do things others can't do."

Looking into the next century, Motorola should be able to aggressively extend its silicon and handset expertise to third-generation systems, its participation in the
Symbian joint venture and new partnerships.

After all, some wireless insiders see the third- generation standards process as tilting toward global system for mobile communications, and Galvin sits atop a pile of
global system for mobile communications patents developed in Motorola laboratories in the 1980s. He finds it puzzling that Nokia and others pay a bundle in
royalties to Motorola, but Nokia and Europe in general continue to get more credit as leaders in the digital migration. "It's a public relations enigma ..." he said.

Galvin would like nothing better than a single 3G standard harmonizing wideband CDMA and cdma2000 standards. "No company has worked harder for the last
two years behind the scenes" to accomplish that, he said.

Although Galvin thinks the ability to synchronize personal computers with PalmPilots is a terrific opportunity, he is less specific about the types of
computing/communications devices likely to emerge from Symbian, the Motorola-Nokia-Ericsson-Psion plc alliance developing an operating system for smart
phones, and its competitors. "There is a lot of opportunity for a variety of approaches," he said, noting that customers are likely to see a teeming market of devices
with Symbian, Java and Microsoft operating systems.

As far as more potential alliances are concerned, Motorola may do a ReFLEX partnership with Microsoft, Galvin said. Last January Motorola announced that it
would make a compact flash module providing FLEX one-way wireless capability for Windows CE devices. Two-way capability, mentioned broadly at the time,
would enhance that agreement.

But Galvin's primary message is not about partnerships Motorola might forge with other manufacturers or any of the other projects it is working on right now. Rather,
it's about what the company is doing to work better with customers.

"We are seeking to create a new Motorola, one that is listening more intently to our customers," he said. "We are more open, responsive and focused. We will work
to deliver the results."

Meanwhile, critics and investors wait for a bold statement from Galvin on what the company should be in five years and what he will do to ensure the transformation
happens.

Jorma Ollila: How Long Can You Sustain Fast Growth?

Nokia's Jorma Ollila (pronounced YOR-ma OH-lih-luh) may have underestimated handset demand stemming from AT&T Wireless
Services Inc.'s phenomenally successful Digital One Rate offering, but don't count on his missing a number often.

"He's very good with numbers, and he can find the soft spots fast," said a Nokia executive.

The son of an engineer, the trilingual (English, Swedish and Finnish) Ollila attended college in Wales on scholarship and earned masters
degrees in engineering, economics and political science. Now 48, he began his career as an account manager for Citibank in London, then served in Nokia's
international operations and finance areas before becoming president of mobile phones in 1990.

Inheriting a conglomerate that has manufactured forest products, rubber goods and electronics, Ollila quickly reshaped the company after becoming CEO in 1992.
He focused the company on telecom growth, put his current management team in place and pumped up cellular phone production just ahead of the digital wave. It
was a little like converting a dragging buggy to a sleek supertrain almost overnight.

Under Ollila's leadership, Nokia delivered stunning performance. At the end of the second-quarter, the company has an 17 percent operating margin, the highest of
the big three handset manufacturers. Its stock, which began trading in the United States in 1994, is up 130 percent this year. Handset and infrastructure sales are on
course to exceed company estimates of 25 percent to 30 percent earnings growth in the third quarter, and analysts expect fourth-quarter and 1999 estimates to go
higher.

So confident is Ollila that he predicts next year Nokia will be No. 1 on the planet in number of wireless phones sold, growth and return on capital.

"I think that's the only reasonable target ... to set for ourselves, and I think that has energized our organization," said Ollila, who asks employees to call him by his first
name and often eats in the company cafeteria to talk with workers.

Interviewed in San Francisco two months after forcing his four key managers into new jobs, a delighted Ollila said the rotation was already paying off in the kind of
entrepreneurial spirit that spurred the group through earlier troubles.

"I see already a lot of positives," he said, "Aha, here we go again!"

What he did was shift former infrastructure head Matti Alahuhta to handsets, Asia-Pacific executive Sari Baldauf to infrastructure and 3G development and handset
head Pekka Ala-Pietila--who lead development of the wildly popular 6100 series--to vice chairman, new ventures. Dallas-based Olli-Pekka Kallasvuo, chief of U.S.
operations, will move back to Finland as CFO, though he will spend about 40 percent of his time in this country.

Business is so good, both in the United States and elsewhere, that the group is on a roll. Following summer promotion for AT&T Wireless Inc.'s groundbreaking
Digital One Rate plan, demand for Nokia's 6160 multi-network handsets outstripped supply. The popular phone features a calendar, alarm and video games.

To boost volumes by year-end, Nokia added a number of new production lines in its Dallas factory, near chip supplier Texas Instruments Inc. Ollila characterizes the
One Rate program as a "major, major success" for Nokia but is quick to note that orders from Southwestern Bell and BellSouth, the other two big customers
distributing the phones, are also strong.

Clearly, Nokia failed to correctly forecast demand for the multi-network phone. Dan Hesse, president of AT&T Wireless, said the carrier and Nokia both
dramatically underestimated the potential demand for One Rate. Although Nokia's later production acceleration eased spot shortages of the phones, Hesse admitted
AT&T probably lost business during the time it took Nokia to ramp up.

"We could have had larger numbers of subs in the last few months had we not been constrained by phone supply," Hesse said.

With Sprint PCS now buying Nokia's 2170 CDMA phones, the company has strengthened its U.S. position by delivering to all digital standards.

Although the United States ranks third out of the five regions served by the company in terms of overall sales, it represents one-third of handset sales.

"The U.S. will be very, very important for us, and we will turn every stone to do well here," Ollila said.

Demand is also high in Europe and Asia for Nokia's new 8810, the sleekest phone to grace a user's hand. Smaller and lighter than the 6100 line phones, the chrome
8810 GSM unit comes with many of the same features, but conceals the antenna. The stylish handset has become Hong Kong's latest must-have, high-tech gadget
and is sure to catch on in other markets as Nokia brings out versions in other frequency bands.

Nokia is experiencing solid growth in China and Europe, but it does almost no business in Russia, so regional economic crises aren't likely to make a dent in
performance. In addition, Ollila, retaining his banker's ways in the C-Block environment and elsewhere, has kept vendor financing to a mere $200 million, further
reducing customer risk.

Ollila has a two-part vision for Nokia's immediate future, and he "puts a lot of effort into communicating where we are going and the vision as a whole," said a fellow
executive. First, the company must continue to rapidly crank out attractive new phones with jazzy features that consumers like. Already, Nokia is turning out a new
model every 35 days. Second, Nokia must make sure that it has a complete infrastructure offering for wireless and wireline operators who want Internet
protocol-based services to back up the new handsets.

"We see tremendous growth opportunity in the handset business with digitalization really favoring us, and with our strong product portfolio," Ollila said, "we will
continue to bring [out] new products; we will not stop here."

He feels that the Psion EPOC solution forming the basis of the Symbian joint venture successfully addresses software flexibility and power consumption issues that
Nokia encountered with the first two generations of its $995 Communicator, an oversized cellular phone offering Web access. "This solution has all the ingredients of
making it the industry standard operating system." But doesn't that square off Nokia and its partners against Microsoft? "We will see competition from the computer
manufacturers. We don't mind that. But mobility represented by digital cellular has some special features and requirements which are not very easy to fulfill. True
mobility is something that today only the cellular manufacturers can bring to the game."

In fact, Ollila is hedging his bets. Nokia has three agreements in place with Microsoft to use Windows CE as a base for phone solutions, with some fruition
anticipated in 18 months to two years.

Nokia will need to beef up base-station capabilities to compete with Alcatel Althshom, which bought Motorola switch supplier DSC Communications Corp., and
Northern Telecom Ltd., now acquiring Bay Networks Inc. To complement its December purchase of Ipsilon, a Silicon Valley systems company, Nokia is working
on more acquisitions. Ollila expects announcements in six to nine months.

Despite the fact that Nokia continues to recruit and intends to increase its U.S. head count by 500 to 5,000 people before year's end, don't expect Ollila to grow
Nokia beyond 100,000 employees, a threshold he considers a danger zone. Why?

"We feel we are close to an optimal size in this industry," he said. When an organization becomes too big, it is "not so easy to handle, to energize, any longer.
Corporate histories are full of this." Ollila prefers to retain a small-company spirit in a medium-sized company, and for that reason, he would rather partner than
acquire. "For a company of our size, this is an ideal way of creating value."

If Ollila has additional alliances in mind, he's not saying. "We have done tremendously well with organic growth, recruiting young people and building on that ..." A
favorite tactic: hire a talented individual, give that person a bit more responsibility than he or she expected and provide a lot of coaching.

Nokia will need the enthusiasm of youth as it ambitiously pursues development of next-generation systems delivering voice, video and Internet with devices shrunk
much smaller than the clunky Communicator.

Although politics are hampering the standards-making process, Ollila feels a standard will emerge in due course. "There's a lot of hot air" that will be cooled after the
International Telecommunication Union makes its recommendation following a six-month review that begins Oct. 1, he said.

"It is really not feasible to harmonize" W-CDMA and cdma2000 "because you would then compromise on the technical advantages in wideband CDMA agreed
upon by the European [standards] bodies. Dual-mode handsets will solve the problem longer term." In the meantime, Nokia is working toward setting the global
perfomance standard for the wireless equipment manufacturers.

Business Editor Bill Menezes contributed research to this article.



When Chris Met Jorma

In August, Galvin and Ollila met for the first time during a two-hour chat in Galvin's office. Ollila characterized the meeting as a routine, get-acquainted session during
one of his frequent trips to the United States.

When asked about topics discussed, Ollila replied wryly, "the weather." But he did say that the Symbian joint venture and developments in the semiconductor and
Asian markets were discussed. Galvin said boilerplate subjects like standards, intellectual property rights and third-generation systems were brought up.

Was there nothing further? No talk of a takeover of Nokia by Motorola, for instance? After all, Motorola is three times Nokia's size, potentially an attractive
acquisition, and the product lines could be an interesting fit.

"Attractive?" asks Ollila, breaking into a broad smile. "We are what we are, just ordinary guys, working a little harder than the rest of the pack." Then he headed for
the tennis court.



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No Clear-cut Winner for Operating Systems
Asian Market Turmoil Hurts Wireless Stocks, Yen Weakens Amid Slowdown
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To: Joe NYC who wrote (16032)10/6/1998 12:47:00 AM
From: Ruffian
   of 152425
 
ALL, CHINA TELECOM & SCDMA WLL;




China Selects Cwill's Technology for National Wireless
Local Loop Network
PRNewswire

AUSTIN, Texas, Oct. 5 /PRNewswire/ -- China Telcom, the telephone
service provider for all of China, has granted Austin-based Cwill
Telecommunications' wireless technology the first access license in the PCS
frequency band to deploy its advanced wireless local loop communication
systems throughout China.

The license was officially awarded by the Chinese Ministry of Information
Industry (MII) to Cwill's joint venture partner Beijing Xinwei Telecom
Technology, Ltd., Company, located in Beijing, China. Beijing Xinwei is
Cwill's partner in China for the manufacture, sale, installation and service of
its wireless products. According to an MII spokesperson, the license was
awarded to help speed-up the countrywide development of improved
wireless communications technology, and to expand the availability of
reliable, affordable telephone service.

"In December 1997, Cwill became the first U.S.-based telecommunications
company to receive an official Technology Certification from China's MII,"
said Wei Chen, Cwill Chairman and Chief Executive Officer. "We plan to
use this recognition of our advanced wireless technology as a spring-board
into other developing countries that are interested in expanding their own
internal telecommunications infrastructure."

Cwill's patent-pending Synchronous Wireless Access Protocol System,
SWAPTM is establishing a new international standard for the application of
smart antenna-based wireless local loop. By combining its smart antenna
expertise with synchronous Code Division Multiple Access (SCDMA)
technology, time- division-duplex (TDD) scheme, and software radio
architecture, Cwill has successfully created a wireless communications
system with a larger call capacity that can transmit signals over distances up
to four times greater than competing products. In addition, the Cwill system
can easily interface with any existing central office switch, and can be
installed and operated at a fraction of the cost of a traditional wireline or
cellular telephone system.

China's equivalent of the U.S. Federal Communications Commission has
granted Cwill's technology exclusive rights to operate its SWAPTM wireless
technology in the 1.8 GHz band spectrum. This means that other
telecommunications companies that want to offer similar products in China
will need to license Cwill's approved technology.

"Cwill's technology is clearly several years ahead of others in the industry,"
said Bryant Wilder, Cwill Vice President of Business Development. "In
China alone, that could translate to $60 million in sales over the next year,
and we plan to expand our offerings to other parts of the globe through
similar joint ventures and partnerships."

Wilder added that today, some five billion people throughout the world are
denied simple access to a telephone because of the high price of traditional
wireline or cellular systems.

"Cwill has the technology to bridge the communication chasms of the world
and to connect a new generation of global communicators," Wilder said.
"There is a growing demand for advanced wireless features, and we plan to
remain at the forefront of that technology."

Cwill is a global leader in wireless local loop technology and advanced
wireless communications products. Based in Austin, Texas, Cwill is a
privately held company that is changing the rules for the way the world hears
wireless. SOURCE Cwill Telecommunications

(Copyright 1998)

_____via IntellX_____


Publication Date: October 05, 1998
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To: Ruffian who wrote (16035)10/6/1998 12:51:00 AM
From: Jon Koplik
   of 152425
 
To all - O.T. : Giant pickles. (Sorry, I felt this was a "must post" item).

October 5, 1998


Vlasic Creates Giant Pickle

Filed at 9:05 p.m. EDT

By The Associated Press

CHERRY HILL, N.J. (AP) -- Vlasic Foods International plans to introduce a
giant pickle that it claims is the world's largest: 10 times larger than an
ordinary pickle.

The chip-shaped pickle measures 16 inches long and 3 inches in diameter and
will cover an entire hamburger, guaranteeing a pickle piece in every bite,
Vlasic said Monday.

The company spent the past four years developing the new pickle,
''Hamburger Stackers.'' The pickle is made from specially cultivated
cucumbers grown by the Cherry-Hill based food giant.

Vlasic spokesman Kevin Lowery said cucumbers used for the pickles were
specially grown for size, taste and crispness. Cucumbers that size grown with
traditional methods would have the texture of a watermelon and would not be
ideal for making pickles, he said.

The pickle was secretly developed under the code name, ''Project Frisbee.'' It
was the brainchild of Frank Meczkowski, who created Vlasic's ''Sandwich
Stackers,'' a broad flat pickle, in 1995.

Only 3 percent of the 35 billion sandwiches consumed at home each year
have a pickle, Vlasic estimates. However, two-thirds of all pickles are
consumed with a sandwich.

This time Vlasic is targeting hamburger consumers. The company estimates
Americans eat 3.5 billion hamburgers annually.

The product has a ''peck of pickle profit potential,'' Lowery said. The
company estimates it could generate at least $20 million in sales annually.

Hamburger Stackers will sell for $2.99 and will be available in two varieties:
dill and bread and butter. The new pickles will hit retail shelves next week.

Vlasic was spun off from Campbell Soup Co. last March. It includes
Swanson frozen dinners, a barbecue sauce business, an Argentina beef
processor and a German gourmet food distributor.

Copyright 1998 The New York Times Company

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To: dougjn who wrote (16022)10/6/1998 3:50:00 AM
From: Maurice Winn
   of 152425
 
Yes Dougjn, I see the internal inconsistency. The inconsistency arises because people are panicking over not very much at all as far as I can tell. Including Alan Green$pan, Rubin and egged on by Clinton who is keen for everyone to forget about impeachment so the allegedly terrible financial predicament can be normalized by his leadership. They seem worried that some sort of unnecessary self- fulfilling prophecy of collapse might occur. I don't think they believe there really is a serious economic problem, despite the precipice comment. So I'm commenting on the panic and dismay people are feeling, but I don't think things are so bad, hence the inconsistency.

The market is down 20% from the all time high, which is a normal night terrors decline. This is inconsistent with real panic which would see a much steeper decline. Again, internal inconsistency I agree. I think that's because there really is not that much wrong. People are wanting to panic, but the true value of stocks really isn't that low. Compare interest rates and returns on stocks. Especially interest rates and stock returns next year and onward. Interest rates are rotten and shrinking fast. That is good for stockmarket returns. In the absence of a recession or depression [whatever the difference is].

I can't see any serious reason for a USA stock market crash. Sure, some change in spending away from international travel to cellphones. Also, savings might increase as people worry, which means lower interest rates and less shopping.

P:E of 20 is reasonable when interest rates are around 3% or so. While such low interest rates are novel for most people, they are historically normal enough. If people have a choice of cash at 3% or shares at 5%, why choose interest. Because of deflation is the answer I suppose. But Alan is almost certain to push the print button given the demands, which will put paid to deflation.

I realize this is just a collage of ideas, rather than rigorous logic. But I hope it gets the idea across. The idea being; people are frightened of their own shadow, things are good and getting better every day, ups and downs are normal, deflation won't happen due to printing by the Fed, interest rates are so low that stocks are a good buy, cdmaOne is going gangbusters despite China getting a bit nervous about 3G CDMA and simultaneously negotiating a better deal for infrastructure by threatening to go with GSM.

A bunch of accountants, banks and Asian property developers have done their dough. Bad luck for them. No great worry for the rest of us. Japan is handling their stuff just right - let the bankers hang out to dry.

Something like that anyway.

Looking forwards to Qualcomm's end of financial year results!

Mqurice

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To: DanZ who wrote (16026)10/6/1998 8:32:00 AM
From: Sawtooth
   of 152425
 
***OT Mot***<<The First Call estimate for MOT was 1 cent with a range of break even to 3 cents. While this is a reduced estimate from several months ago, they still beat the estimate.>>

Dan: True; they get some credit for this.

<<When revenue growth kicks in during the eventual recovery, they will be meaner and leaner and have even better earnings potential.>>

I hope you're right. However, Mot has become the "show me" state of the tech market. I sincerely hope they do well. "One thing's for certain; we'll all find out!" ...Tim

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To: Rajala who wrote (15978)10/6/1998 8:35:00 AM
From: Drew Williams
   of 152425
 
re: Satellite Telephones

I could go on and on about satellite telephone systems and bore everyone, but there is a Globalstar thread on SI where everyone who is interested can look for more information. Yes, Mqurice posts there, too.

Trust me, while this is a lengthy post, this IS the short version:

Throughout most of the world, nobody has ever (and nobody will ever) built a wired telephone system. This is because there is insufficient population density (hence insufficient local economics) to support it. Even such third world places as Pennsylvania have significant areas where wired telephones are essentially unavailable. This is one of the reasons wireless systems like conventional cellular, PCS, WLL, etc. have come into being. No wires imply no need for wire, telephone poles or any of that expensive fixed infrastructure that is technologically obsolete before it is installed. Even these wireless systems, however, have infrastructure costs, and nobody is going to install them where they cannot reasonably expect significant usage rates.

I do not know exactly where you live, but where I live in suburban Philadelphia, Pennsylvania, USA, I can choose between a number of carriers offering every kind of alphabet soup cellular technology. I personally use both AMPS and TDMA. And within the limits of where I regularly travel, both of these systems work fine, thank you very much. However, if I drive as little as thirty or forty miles North or West, the situation gets considerably more dicey. Coverage in the agricultural areas is less complete, and if we get to the Blue Mountains and the Allegheny Mountains (which, while nice enough, do not even begin to compare with Europe's Alps) fuggedaboutit.

If we extend this to other places even more third world than Pennsylvania -- for instance, Ohio (just to keep this USA-centric) -- then it becomes obvious to me that all currently implemented systems and all contemplated land-based wireless systems will not solve the problem. One estimate I've seen says that current and proposed cellular/PCS systems cover about twenty to thirty percent (variation due to quality of service issues -- maybe it works on top of a hill but not down in the hollar'.) It seems to me I begin to smell an market opportunity. It may be a niche, but it is a pretty big niche, and I have put a healthy chunk of my personal fortune (ha ha!) into satellite telephone companies as a result.

Iridium has some really interesting technology. Unfortunately, it cost a whole bunch and most of it is way out there in space where it cannot be upgraded or repaired. I agree with you that their handsets and service will be expensive, but I expect there are enough globetrotting business people and government types (read military) who need "absolutely everywhere" service (includes eskimo and penguin territories) enough to pay these rates. Since they are first to market, they will capture the early adopter crowd, too. Whether they will be successful enough to finance and build a second constellation a few years down the line is another question with a much less certain answer.

Globalstar, on the other hand, has not used such interesting (read "unproven") technology, and all the fancy stuff is on the ground where upgrades and service are relatively simple to accomplish. Yes, they have been having some small trouble getting their satellites into space (arggh!) but they will get it done. Because their costs have been lower and their system capacity is much higher, Globalstar will have significant cost advantages over iridium. The last numbers I saw had handsets costing US $750 with airtime at less than US $1.00 per minute. Obviously, costs in Europe will be determined by the local service provider. Globalstar's initial wholesale cost will be $.47 per minute, so everything over and above that is local cost and local taxes.

My personal rule of thumb is that if the average person with a Volvo (my wife drives an S70, about US $30,000.00 new) can afford it, then there are enough potential customers to make it financially viable. After that, it is all marketing.

As far as the cost and relative clunkiness of the satellite handsets, not to worry too much. When I bought my first "portable" cellular phone more than ten years ago (for US $1,300) it was the size of an unabridged dictionary and weighed even more. This is a large reason why cellular phones in the USA were for a long time "car phones" where this size and weight became irrelevant. The newest handheld QCOM models are bigger than a Matchbox car, but that's good, because so are my hands and the distance from my mouth to my ears is, too. In fact, IMHO the newest really teenie tiny phones I've seen are smaller than my comfort factor, being a full-size adult with full size fingers trying to delicately input phone numbers on tiny keypads. I do not expect satellite phones will ever get that small, but they will obviously get much smaller than the models seen so far. This is already happening.

By the way, you may or may not be aware that QCOM is a major technology supplier to Globalstar and owns a chunk of it, too. QCOM will be manufacturing Globalstar phones, which will also work on CDMA networks. I forget who all the Globalstar handset manufacturing partners are, but I believe Ericsson is one of them and will be selling a Globalstar phone that will also work on GSM systems.

As far as quality of service issues are concerned, Globastar will be using QCOM's CDMA technology between the handset and the satellite, so the clarity will be no problem. Also, both Iridium and Globalstar are LEO (Low Earth Orbit) systems as opposed to GEO (GEOstationary) satellites. This means they are not as far out there so the signal does not have as far to travel. This means the latency (oversimplified, this is the time it takes for the signal to go up and come back down) is not noticable.

By the way, Globalstar will also be using some of its capacity for "Village Phone" systems in genuine third world areas, where most of the population has never seen a phone, much less called anyone. More than half the world's population has never made a call. I know this is true, but it is hard to imagine for this American who grew up with unlimited telephone use.

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To: Drew Williams who wrote (16039)10/6/1998 9:01:00 AM
From: Dave
   of 152425
 
Drew:

I personally use both AMPS and TDMA.

Uh-oh, here comes the flogging...

:^)

dave

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To: Drew Williams who wrote (16039)10/6/1998 9:17:00 AM
From: Jon Koplik
   of 152425
 
Drew - thanks for an excellent post. End of message.

Jon.

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