Format for printing Reuse/Reprint
	Dueling Fools Introduction Bull Argument Bear Argument Bull Rebuttal Bear Rebuttal Vote Results Flashback: Ericsson
	Discussion Board Dueling Fools

By Tom Jacobs (TMF Tom9)
May 9, 2001

Talk about a letdown! I was champing at the bit at the thought of a rematch with my esteemed colleague Chris, with whom I faced off in my first Fool duel last August on wireless enabler Qualcomm. I thought Chris would scream some 3G winners' names from the rooftops. Far from it. Even though he thinks the technology will succeed, he only allows that "some companies... will benefit." Damning with faint praise, as they say.

Chris may be right when he identifies the actual applications he thinks will succeed. While I'm not sure that SMS (short messaging service), vending machine payment by phone, or location-based services are killer apps, they are deployed successfully in parts of the world and generating revenue for the service providers. But which companies offering these services will reward investors? He doesn't say.

The clue for investors may come at the end, where Chris happens to mention the software companies, such as Aether Systems and Openwave, or Pumatech (Nasdaq: PUMA), which he doesn't. Considering software's high margins, it's always a good idea to consider companies that may dominate in a given software market.  I don't know really know Aether. Openwave is half of the former Phone.com, which makes an Internet browser for wireless devices, and the company's strength during recent economic storms may mean it has the ability to survive and prosper.

But here again, what about Qualcomm? It's done something quite savvy -- teamed up with Microsoft (Nasdaq: MSFT) to form Wireless Knowledge, a company whose software provides secure wireless access to company databases. In anything software, better to join Mr. Softy than fight him. Qualcomm has also developed BREW (binary runtime environment for wireless), a software platform for wireless handset Internet services, and appears to be having early success in getting developers to write applications for it. The question for investors is whether these ventures can only add value to Qualcomm as long as all wireless roads lead to its CDMA technology, because that's still not assured.

Chris may be a 3G bull, but he hasn't shown where the investor might go to profit.  

Tom Jacobs (TMF Tom9) owned a wireless phone once but refuses to do so again until service improves and costs decrease. He is not a Luddite. At press time, he owned shares of Qualcomm, Metricom, Pumatech, and Universal Display. To see his stock holdings, view his profile, and check out The Motley Fool's disclosure policy.

Vote ResultsVote Results »