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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 168.09+1.8%Nov 28 9:30 AM EST

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To: Tomas who wrote (2504)10/19/1999 10:33:00 AM
From: slacker711  Read Replies (2) of 13582
 

An excerpt from an article....confirms termination of DSP's CDMA license.

Also uncertain is how an Intel/DSPC tandem would affect the CDMA market.
In the mid-1990s, San Diego-based Qualcomm Inc. licensed CDMA chipset
technology to four companies: DSPC, LSI Logic Corp., PrairieComm Inc., and
VLSI Technology Inc.

A Qualcomm spokeswoman confirmed that, in effect, Intel's acquisition would
result in the termination of DSPC's CDMA license.

"The licensing agreement does not automatically transfer to Intel," the
spokeswoman said, noting that the company must now negotiate a new license.
Once that happens, she said, "We would be happy to have Intel in the CDMA
chipset market."

The situation is similar to Qualcomm's decision to terminate its arrangement
with VLSI Technology shortly after the company was acquired by Philips
Electronics NV last June. Qualcomm and Philips/VLSI are renegotiating the
terms of the CDMA agreement, but no deal has been reached.

If it were to sever ties with DSPC-and with its two other licensees that do not
have products in the market-Qualcomm could be left as the sole source of
CDMA chips in a market expected to grow from 8.7 million units in 1997 to 69
million units in 2002, according to Dataquest. Such a disruption to DSPC's
supply base could leave CDMA chipset customers like Denso Wireless
Communications and Sanyo Electric Co. Ltd. in limbo.


techweb.com
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