Tips On Investing In Wireless Opportunities. If you[base ']re looking into investing some of your hard-earned money into the stock market, the wireless sector should
certainly be near the top of your list of investment opportunities. But what companies should you be focusing on, and
what trends should you be aware of? Standard &
Poor[base ']s Kenneth Leon doles out some advice on what parts of the wireless industry you should be looking at
as part of your overall investment strategy. He hints that the emerging VoWiFi (voice-over-WiFi) market looks strong,
and that the goal of putting all wireless services into one small device is a ways away, but still attainable.
Q: What wireless-service companies look strongest now?
A: There are five nationwide carriers in the U.S. market that control over 90% of total subscribers. We see Verizon
Communications (VZ); Cingular, owned by BellSouth (BLS) and SBC, and Sprint (FON), with its proposed merger with Nextel
Communications (NXTL), as best positioned in the U.S. market. We also like Vodafone (VOD) for playing the international
market.
Q: Who looks best in wireless equipment these days?
A: Our top recommendation is Qualcomm (QCOM), which is the market leader for CDMA technology. This is the only company
that enjoys pricing power in the industry. The company is well positioned with its intellectual property on CDMA, for
which it gets paid royalties on chipsets and handsets that are shipped around the world. Because of the company[base ']s
unique position, we see Qualcomm as similar to the position that Microsoft (MSFT) enjoyed in the 1990s.
...
Q: Do you see any impact on your area from voice-over-Internet protocol (VoIP)?
A: Again, from a wireless perspective, we[base ']re beginning to see wireless take on IP-based services [~] for example, the
network upgrades to third-generation platforms will allow wireless subscribers to be able to navigate the Web and send
and receive e-mails and files. The services and features that you can get on a broadband wireline network are expected
to be available on wireless networks in the next two years.
...
Q: So is this a good time to get into wireless services?
A: We think one should be selective in the group and play a mix of domestic and international stocks. In the U.S.,
because there has been so much consolidation with mergers and acquisitions, we think the names we mentioned before are
attractive. And outside the U.S., we think Vodafone has attractive valuation and a strong competitive position.
...
Q: Will we eventually [~] perhaps soon [~] be able to carry one small device for all uses?
A: It[base ']s an aspiration for everyone, but it will take time. What has been recognized by many is that wireless devices
are one of the largest and fastest-growing consumer-electronic products. The ability to communicate, be entertained,
keep calendars, and send text messages will probably happen in a single device, including music capability [~] many of
the handsets today have MP3 features in them.
[The VoIP Weblog]
7:09:13 PM 
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