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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 151.59-0.4%Jan 30 9:30 AM EST
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To: Maurice Winn who wrote (176)7/3/2000 11:11:33 PM
From: Pierre   of 197451
 
Maurice, why not announce a two tier royalty rate. 5% for CDMA 2000 and 15% for W-CDMA. Put that information on the table right now and get the court action started. Meantime, all that expensive spectrum sits idle and CDMA 2000 begins to look like the only choice, because: one, it works; two, it will be available next year; three, the royalty rate is substantially cheaper; four, W-CDMA is at least 3 years out (and may never be viable); and five, no one really wants to have to find out from a judge whether they can deploy, or how much deployment will cost.

By announcing the enhanced royalty rate for W-CDMA, items three and five are added to the equation. In short, Q would be telling the providers "you can pay 5% next year, or you can pay 15% if and when you make it work." Meanwhile, spectrum sits idle.
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