CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 152.21

-0.3%

3:59 PM EST

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To: A.J. Mullen who wrote (678)	9/5/1996 5:34:00 PM
From: kech	of 1819

QCOM acquired the position in return for granting Globalstar exclusive use of CDMA among satellite phone providers. It didn't take any cash. In addition, QCOM sells infrastructure equipment to Globalstar LP. Some of the revenues and profits it has been reporting so far has been from this source. It also plans to use Globalstar LP for its Omnitracs business - it will shift from buying these services elsewhere. As for prior-knowledge - I think Globalstar wanted equity participation by Qualcomm to get there commitment to make the technology work for them. By not taking cash right away Qualcomm encourages the development of a system that facilitates the Global Use of CDMA. Much as Nextwave helps the national exposure for CDMA and allows small PCS start-ups to have access to a national footprint I think Globalstar may also make it easier for CDMA to be picked as a standard in foreign countries. It all works very well to the mutual advantage of all parties concerned.

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