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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 182.19

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Dec 10 3:59 PM EST

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To: Peter J Hudson who wrote (62396)	4/11/2007 10:11:40 AM
From: waitwatchwander	Read Replies (1) of 196900

---> add high resolution camera, MP3 player and PDA functions Using those functions with an Over-The-Air transmission capability is an added benefit. If folks don't want to pay for that capability, they can can always buy (or sell) that stuff without a phone and save a few dollars (or euros). Think of it in terms of making the pie bigger for all or just setting up one's own roadside stand to sell tarts. Do you really think operators see no benefit in having those devices incorporated into their phones? Maybe if Nokia worked harder at getting OTA usage (and chipset integration) of those devices, operators might well see the benefit of paying them for that added value. One could also argue that the devices you noted now sell phones (and OTA data). So maybe, those holding the patents on those innovations should be claiming that they also have a right to royalties on phones. But wait, do those inventions really make the communication functions of a phone more valuable? Hard for me to say. Convergence is a complicated game. It is all about offering adding value. The winner is the one who integrates the most value at the least cost. Royalties should be applicable to ALL technologies that enable the provision of added value. If an MP3 player adds value to the communication capability of a phone, it should get a piece of the phone pie and vice versa. The issue you now raise was first raised with laptops. Given the recent proliferation (at least according to news items) of embedded wireless devices, the capping of royalty value has worked in that venue. We are now getting down to the nitty gritty of handset costing and I'm sure mechanisms similar to those used for laptops will be the basis of resolving those issues. With the pending arrival of Snapdragon based devices, video and other such and 4G services, value applicable to royalty is an important industry issue. It is a pity Nokia (and Qualcomm) don't consider such an industry betterment approach in the PR campaigns circumventing their negotiations. It might just be the out-of-box thinking where they could both prosper and get the train back on the mainline.

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