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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.23-0.6%Dec 22 3:59 PM EST

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To: HECTOR RUBERT who wrote (51847)11/27/1999 3:17:00 PM
From: Cooters  Read Replies (2) of 152472
 
Hector, Here's a couple quick answers:

<<Now, does Q get paid for CDMA royalties?>>

Yes, they get royalties for the Lucent equipment and they also provide ASICs for some, LU being one of them. It is not on the degree of handsets, both in percentage(based on some of Gregg Power's comments on the subject) or in volume. HDR and 3G deployment may increase either/both of these, though.

<<So, in essence it doesn't matter who provides the equipment as long as they use Q's technology for royalties and licensing revenues? And does Q receive revenues on the usage of its technologies?>>

Yes to the first question, although varying royalty rates and handset prices do favor some manufacturers over others. There is some question about W-CDMA, but most of us are pretty confident Q will receive royalties.

Revenues for usage of Q's technology is in the form of royalties, with some initial licensing fees in many cases.

Hope this helps,

Cooters
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