Lars, being a world renown economist, I can explain: <If QCOM will enable Telcos to sell more data and build fewer towers and make out like bandits - let them pay for it.>
There is a chain of suppliers to the "Telcos". Some supply plastic, some provide trucks to deliver products, some provide batteries, some provide spectrum, some provide power stations, some provide wires to houses, some provide pockets to put phones in, some provide screens, some provide shops for the phones to go in, some provide cellphone towers, some provide advertizing. There is also software, ASICs, legal systems, military systems.
All of those efforts, and that is a minuscule fraction of the effort that goes into delivering a swanky new CDMA-powered cyberphone, are intended to be wrapped up into one neat little bundle and sold to customers who come into the shop.
The customers decide to buy the phones and service. They start giving the "Telcos" money in exchange for those phones and services.
The "Telcos" pay their various suppliers, who pay their various suppliers, who pay their various suppliers, who pay their various suppliers ... etc ... and wonder of wonders, one of the suppliers is the person who buys the handset and they use the money they get paid to buy another handset in a year or three. And the money goes around again.
So, you can see that the "Telcos" DO pay the royalty. So there is no need for the change, to your system. Similarly, the plastic suppliers don't charge the "Telcos" directly. They charge the phone maker and leave it to them to charge whoever they sell the phones to.
I think I might have just earned two Nobel Prizes in economics in two posts. And THREE Nobel Prizes in two days, with the very belated recognition yesterday by Globalstar that Mq's Stack it High and Sell it Cheap marketing theory is an excellent idea for empty satellite phone service constellations.
Globalstar is only 8 years late in figuring it out. I hope none of the now-fired previous Globalstar management are on the juries deciding the Nokia cases.
Globalstar should sell a LOT of phones now. In case anyone has missed it, that is very good for QUALCOMM because QUALCOMM, despite rumours to the contrary, has always been in the handset business. QUALCOMM makes the Globalstar phones. L M Ericsson and Telit have dropped out.
Mqurice |
