We believe the announcement shows further evidence that Motorola's General Instrument acquisition is paying dividends. We have confidence that the company can deliver 20 percent growth in the segment through 2001.

Total net subscriber additions for the Korean market declined from 550,000 and 417,000 in October and November, respectively, to 164,000 in December. The slowdown was caused in part by a government investigation of illegal handset subsidy payments allegedly paid by carriers in previous months.

We expect a potentially heavy impact on Qualcomm, especially for second-quarter results. We estimate that Qualcomm would have derived more than 25 percent of its revenue from Korea this year. We remain cautious on Qualcomm shares.

They are one or two years behind Ericsson and Nokia in terms of getting aggressive with digital handsets.

We believe there is upside to our estimates due to strong execution, overall strength in the devices segment and a relatively strong holiday selling season.

We believe the new company should be a core portfolio holding for investors seeking participation in the proliferation of the mobile Internet.