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Verizon Wireless along with its vendor partners Cisco, Lucent, Motorola, Qualcomm and Nortel, have been talking about creating a new architectural approach for next generation wireless networks. The guidelines behind this new approach is called Advances to IMS (A-IMS.) Find out more about this in telephonyonline.com.


Filed under: Stock Watch and Infrastructure and News
Comments: None

Motorola’s Phones Get Even Thinner
Posted on 07.26.06 by Nikhil @ 12:32 pm

Motorola says its going to sell its thinnest phone ever, the Motofone, in emerging markets, where the bulk of growth is expected. Motorola said the new phone is even smaller than its RAZR line at just 9 millimeters. This ultra-thin phone comes at a critical time for Motorola as emerging markets become the battleground for market share with Nokia. Ron Garriques, head of Motorola’s handset division told investors on Tuesday that Motorola “must go out there and disrupt the high growth markets”. The company said it would also improve its distribution in the emerging sectors. Find out more about the ultra-thin phone in telecoms.com.


Filed under: Stock Watch and Infrastructure and News
Comments: None

Nortel to Get Out of UMTS?
Posted on 07.25.06 by Nikhil @ 6:00 pm

Apparently, UBS Securities has been saying that Nortel has separated its GSM and UMTS access businesses, a sign that the company is spinning off its UMTS business. It would be an interesting move since it’s a critical business for the company and many analysts have wondered what Motorola and Nortel will do to compete in an infrastructure market that has seen some massive mergers this year. You can read more about at Nortel in Network World.


Filed under: Stock Watch and News
Comments: None

AMD Goes Mobile With ATI Technologies
Posted on 07.24.06 by Nikhil @ 4:22 pm

The possibility had been discussed for years, but finally, on Monday morning, chipmaker Advanced Micro Devices announced that it plans to acquire ATI Technologies, the Markham, Ontario, manufacturer of graphics chips, for $5.4 billion. That’s a 24% premium over ATI’s Friday closing price of $16.56.

The deal was approved yesterday by the boards of directors of both companies. Under the terms, shareholders of ATI will receive cash and stock worth $20.47 for each share. Click Here to read the rest of my column in Forbes.com


Filed under: Stock Watch and News and Mergers/Acquisitions
Comments: None

Clearwire gets $900 million, Drops IPO
Posted on 07.06.06 by Nikhil @ 5:44 pm

There has been lots of talk about the Clearwire IPO recently. I’ve been skeptical. After all, the market is sketchy right now, the company is not profitable and it only has 20,000 subscribers. The big draw, of course, is that Craig McCaw runs the company. The news just out is that instead of going public, Clearwire will get a $900 million investment led by Intel Capital. Intel Capital will invest $600 million and the rest will come from others, including Motorola. Clearwire is the second largest 2.5 GHz spectrum holder in the U.S. With its $900 million, the company, undoubtedly, will deploy the high speed WiMax system. Read the press release from Clearwire. Good news for WiMax.


Filed under: Infrastructure and Cutting Edge and News and Mergers/Acquisitions
Comments: None

A Rebound for UTStarcom
Posted on 07.06.06 by Nikhil @ 4:53 pm

Shares of UTStarcom have been rising lately, a nice change for this stock. Over the past week, shares rebounded from $6 to $8. Part of the reason: the company received notice from Nasdaq that it has fulfilled requirements for continued listing on the stock exchange. That lifts a heavy burden. The notice came after the company filed financial results for the first quarter of 2006 and the year ended Dec. 31, 2005.

Back in March, you may recall, UTStarcom said that it faced delisting for failing to file financial results on time. The company had delayed filing pending of an investigation by its audit committee and reviews of its internal controls.


Filed under: Stock Watch and News
Comments: None

Openwave - Value Play?
Posted on 07.06.06 by Nikhil @ 4:52 pm

Shares of Openwave Systems (OPWV) fell more than 33% today after the company preannounced its fiscal fourth quarter results which will be formally announced on July 28th. The company said that it booked revenue of $90 million to $92 million, falling way below the $120 million that was expected. Openwave’s reasoning for this was that deals are getting more complex and as a result, the wireless carriers are taking longer to make purchases, which has slowed its ability to convert backlog orders to revenue.

Openwave did announce that it had made a systems deal, which had been promised. But the deal was smaller than Wall Street had hoped for at $13 million.

Because of the fall in revenue, lower gross margins (about 65% instead of an expected 70%), the smaller systems deal, it looks like earnings per share for the quarter will come in around breakeven, down from an expected $0.23 per share.

The stock is likely to remain under pressure for a while, partly due to an options investigation that has been taking place at Openwave and many other companies. This may force Openwave to delay its 10K report.

But Openwave is still a strong company that has a backlog of orders amounting to $260 million. I believe shares of Openwave have good upside potential. The company has a lot of cash ($3.50/share) and $122 million in bookings giving it a book to bill ratio of 1.3 Its Forward PE right now is about 7.5 and its price earnings to growth (PEG) is 0.63. Openwave also said that for fiscal year 2007, it expects to generate $450 million in sales and EPS of $0.60.

Given its very low valuation right now and the liklihood that revenue and earnings will recover, shares of Openwave are currently a great value play for investors willing to wait at least 6 months.


Filed under: Stock Watch and News
Comments: None

China Mobile/Millicom Merger Scrapped
Posted on 07.04.06 by Nikhil @ 5:22 am

This week, China Mobile said plans to acquire Millicom International had been abandoned. The reason: the two companies were unable to come up with a price tag. Too bad. The $5 billion deal would have given China Mobile a nice entrance to emerging markets, where Millicom is a big player. The Red Herring has a good article about this.


Filed under: Telcos and News
Comments: None

Score One for Sprint
Posted on 07.03.06 by Nikhil @ 10:02 am

The Federal Communications Commission has approved the first dual-mode handset that brings together CDMA with iDEN. It’s big news for Sprint, which, since the acquisition of Nextel, has two different network standards. The new phone, called the IC502 will use Sprint’s CDMA network for traditional voice calls as well as for data access and will use the iDEN network for all push-to-talk features. For operators, this phone will help them migrate customers off the Nextel iDEN network and onto CDMA


Filed under: Stock Watch and Telcos and News
Comments: None

Earthlink turns on Anaheim’s Wi-Fi
Posted on 06.29.06 by Nikhil @ 5:38 pm

Earthlink just had a big day. The company, which I have covered in Forbes Wireless Stock Watch, turned on its first citywide Wi-Fi system in Anaheim, Calif. The network is expected to be widely used not just by the locals, but by the tens of millions of tourists that come the city each year to visit Disneyland. Andy Seybold, a wireless technology guru who is generally skeptical of the success of municipal Wi-Fi networks, said that the network is going to change the face of telecommunications forever. There are several reasons. One is Reliability (In New Orleans, says Seybold, Wi-Fi was the last network to go down and the first to come back on line). Another was that the network will provide 90% coverage to the city of Anaheim to 90% of buildings’ exterior walls.That means the service extends indoors. Of course, there are many hurdles for Wi-Fi to overcome. Competing against the established carriers won’t be easy and issues, such as quality of service and customer service, could pose serious problems. But with the Anaheim municipal Wi-Fi system officially launched, we’ll sound find out.


Filed under: Stock Watch and Infrastructure and Cutting Edge and News
Comments: None

« newer posts previous posts »

I'm Nikhil Hutheesing, and WirelessNik is my personal blog. A senior editor at Forbes, I am also the editor of the newsletter, Forbes Wireless Stock Watch. Here, you'll find my take on the latest breakthroughs in wireless technologies as well as ways to profit from wireless in the stock market.


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