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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 9:30 AM EST

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To: Ramsey Su who started this subject11/12/2002 8:05:39 AM
From: qbull   of 197147
 
from china nex




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Last Update: November 11, 06:10 PM

Analysts say the new WCDMA policy on patent use is mainly aimed at China, as the country is considering issuing new mobile licenses to China Telecom and Netcom for 3G services.
Last week, a group of mobile equipment companies and NTT DoCoMo announced an alliance for using WCDMA patents, the price is about 5% of terminal sales price, and could be even lower for Chinese companies. Many in the industry believe the move will be a blow to Qualcomm's policy on CDMA royalty payments.

China is at a crossroads on selecting 3G standards, which China Mobile and Unicom are very much set on WCDMA and CDMA2000, it remains a question as what China Telecom and Netcom will do should they be granted a license. Analysts say the new WCDMA policy is trying to gain their attention by sending a strong message.
[11/11]


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The new WCDMA licensing policy could have significant impacts on China as it is trying to figure out when to launch 3G and what standard to use.
WCDMA is a dominant 3G standard in the world with 110 operators have, or will, choose it as the platform. Most WCDMA IPRs are owned by the group which has announced the alliance, including Ericsson, Nokia and Siemens. At lower royalties, equipment manufacturers and operators should be able to make investments easily, said an executive at Nokia. While it is not clear what standard China Telecom and Netcom will choose, Netcom is apparently in favor of WCDMA by conducting tests with several equipment vendors.
[11/11]


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An industry analyst has criticized Datang's decision to bet all its resources on TD-SCDMA is "suicidal" behavior as demand for 3G service remains elusive and operators stay aside for the standard.
Kan Kaili, a professor in Beijing, says current 2.5G service is very much like a litmus test for 3G, which is growing slowly in registered customers and even fewer use the services like mobile Internet and software downloading. This should shed a strong light on 3G since it will use similar services. According to Kan, it is common knowledge that if a person watches a movie or sports on his handset while walking, chances he will hit a tree. The industry has not figured out simple principles like this or become too obsessed about the name.

As equipment companies and operators stay on the sideline for TD-SCDMA, Datang is turning to the government for help, but the MII is even more cautious on 3G. Moreover, MII cannot dictate companies on business decisions. Kan said Datang's decision on TD-SCDMA shows its immaturity as a business and it will have serious consequences on the company.
[11/11]


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Unicom has launched four new monthly plans in Shenzhen, which significantly reduce per minute charge for cellphone users. Other local operators are expected to follow suit.
In Shenzhen, customers now can pay 123 yuan ($14.8) a month for 333 minutes, or .37 yuan (4.5 cents) a minute (regular .4 yuan). Other plans include 199 yuan ($24) for 1,000 minutes (.2 yuan a minute); 266 yuan ($32) for 1,600 minutes; and 369 yuan ($44.5) for 3,000 minutes.

If customers prefer, they can opt for a handset subsidy program: the price they pay for handset will be used for making calls spread over 12 months. For example, with 1,200 yuan ($145) for a handset, the customer will have 100 yuan ($12) a month for free call minutes. The promotion will end on November 30.
[11/11]


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A researcher in China said handset can easily be tapped even when it is turned off, and become a lead for intelligence to track the person's position and his ambience such as casual conversation.
Li Daguang, professor at a military university said even the handset is in standby mode, it is constantly sending signals with base stations which can be used to track the person. And the handset can be turned on remotely to eavesdrop conversation and moves. The solution? To take out handset battery in some restricted areas. He reveals this is what the military and part leaders do when they convene.

Reports say "spy" handsets are selling well in some countries, which is essentially a monitoring device on handset conversations. It is automatically on when a person begins conversation with handset. It is particularly popular among women to monitor their husbands. What a world we are in.
[11/11]


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Datang Telecom is reportedly asking Qualcomm for talks about specific use of what Qualcomm claims to be its patents on CDMA, where Datang is accused of using without permission in its development of TD-SCDMA. The issue is become critical after the MII has allocated spectrum bands for TD-SCDMA, opening way for commercial deployment in China.
Qualcomm insists it own the basic patent for TD-SCDMA, similar to WCDMA and CDMA2000, all are 3G standards. Qualcomm has been very strict on protecting its right so that it can reap licensing fees of 2-6% from every 3G handset sold.

The request by Datang indicates a gesture of compromise; previously the MII and Datang insisted TD-SCDMA was invented completely by the Chinese. Qualcomm has not responded to the Datang's request. Analysts estimate if TD-SCDMA takes off in China, Qualcomm could gain $860 million to $1.4 billion in royalties.
[11/08]


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A Siemens executive has openly criticized CDMA2000 and urged Unicom to alter its directions to GSM-GPRS, in order to be eventually migrating to WCDMA.
The executive predicts CDMA2000 will unlikely become a 3G mainstream, and Unicom has only 4 million CDMA customers but over 57 million GSM customers, and the company must find ways to bring up these customers to a new platform. Unicom, however, seems to be headed for a different direction as the company is completely sold out to CDMA. Siemens has supplied GSM equipment to Unicom.

Responding to the criticism that TD-SCDMA is not an open standard, the executive said it is a misunderstanding; in fact, CDMA2000 is the most closed system, because it is different from anybody else, said the executive. Most believe WCDMA will take up 80% of 3G market in the world, including the US where CDMA is born.
[11/08]


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A group of mobile equipment companies has announced an exclusive patent pricing for WCDMA, which is lower than the current royalties companies must pay Qualcomm for use of its patent.
The purpose of the alliance is to ensure use of WCDMA patent will pay less than 5% of equipment price. Nokia, Siemens, Ericsson and NTT DoCoMo said they will use the policy to promote WCDMA in the world, which is already a de facto standard for 3G in many countries.

Analysts say the alliance is a challenge to Qualcomm, because they can completely abandon CDMA payment by turning to WCDMA. More companies have said they will join the alliance, including Fujitsu, Matsushita, NEC and Sony.
[11/08]


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A report by Radicam shows unified messaging market is ready despite a sluggish economy in many countries.
The report covers three key areas of unified messaging market: communications technology, operator analysis and a customer survey which polled 151 large companies. Radicam says 55% of companies plan to employ some form of unified messaging service in the next 18 months. The market could reach $461 million this year and $8 billion by 2006. There are about 7.5 million unified mailboxes, which will rise to 89 million by the end of 2006.
[11/08]




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