Did Motorola Make The Wrong Call?

How it wound up in the back of the pack in PCS

If a company could use a hotgrowth market right now, it's Motorola Inc. And it seems there's one at hand: Just as Motorola's semiconductor and cellular-phone businesses are in the doldrums, a new kind of wireless calling known as personal communications services (PCS) is on the horizon. The Federal Communications Commission has auctioned licenses to three PCS operators in each city across the U.S., and over the next five years, these operators will spend $15 billion to $23 billion building PCS networks, estimates market researcher Yankee Group Inc. It's a perfect opportunity for Motorola, a top supplier of cellular-network gear.

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