Investing

Winners From China's New 3G Expansion (MOT)(QCOM)(TXN)(BRCM)

Empire_2The Chinese government has finally set up a system to bring fast wireless 3G service to its citizens. In a country where handsets are used the way that many people in the US and EU use laptops, the move will bring a new generation of multimedia access to hundreds of millions of people and should make several US companies a lot of money.

According to The Wall Street Journal. "China Mobile Ltd. (CHL), the dominant carrier, would be assigned the Chinese-developed TD-SCDMA standard. The global standards WCDMA and CDMA-2000 are to go to China Unicom Ltd. (CHU) and China Telecom Ltd., respectively."

While US and EU equipment and chip providers will not make money from the local Chinese 3G standard, they could make billions of dollars providing chips and infrastructure for the global standards.

In the chip business, Qualcomm (QCOM), Broadcom (BRCM), and Texas Instruments (TXN) are all likely to provide components for 3G handsets. Nortel (NT) and Ericsson are large providers of infrastructure components as is Nokia Siemens Networks .

Motorola (MOT) is a large supplier of CDMA-2000 components.

Many of those companies should make money on the new Chines build-out, unless China tries to push all of the business to firms inside its borders.

Douglas A. McIntyre

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

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