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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!
QCOM 180.90+2.1%Oct 31 9:30 AM EST

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To: Eric L who wrote (1763)12/12/2006 2:49:00 AM
From: Maurice Winn  Read Replies (1) of 1819
 
Eric, I don't think the "proprietary" aspect has anything whatsoever to do with it. All "proprietary" means in this instance is a derisory 5% royalty. Over a 2 year cost of $2000, 5% on a $200 phone is $10. Hardly a big deal.

I think a much bigger deal was the sims available in GSM. That was excellent.

Also, the cost of producing a minute via CDMA was much less than a cent, but with retail prices of 30c a minute, the fact that GSM cost more than that, but still only about a cent a minute, meant that everything else making up the 30c was far more important.

Then there was economy of scale, functionality etc in the GSM world.

It all added up to BIG problems for CDMA to compete despite the huge spectrum advantage.

Anyway, it's all history now. In NZ, nearly all new phones are CDMA-based [W version or 2000]. Same in Japan, same in Korea.

I would NOT have thought [in 1997] that in 2006, we'd even have GSM still going, let alone being the dominant technology. Amazing to me. There is the issue of QCOM technology being used to make GSM/GPRS/EDGE work - still to be determined. Without that, perhaps GSM would have been long gone.

Mqurice
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