Yeah, you're confused alright. You actually believe that somebody is going to believe you NOW after you were caught red-handed with a blatant LIE? LOL. You are one bizarre dude.
The IDCC-Nokia deal in 2/99 already provided a 'structure for the payment of TDMA and CDMA royalties AFTER the end of the deal.'
1)TDMA - Assuming the low-end of an expected 1% to 3% deal, that would mean anywhere from $1.00 to $2.00 in EPS for IDC starting in March, 2002, depending on the assumptions used.
Example:
1% (royalty rate) x [80% (TDMA/GSM) x 120m (handsets sold by Nokia) x $100 (ASP)] = $96m;
$96m / 53m shares = $1.81 from Nokia's TDMA/GSM business alone.
Heck, the risk-reward is good EVEN if I use 1/2 of 1% as the royalty rate, especially when you understand the kind of unit volumes Nokia is going after. Look at the prescient moves Nokia is making in China, Russia, India and Brazil -- that's close to half of the world's population, by the way, going the TDMA/GSM way.
Add to that the fast-growing recurring TDMA royalty stream which went from under $1 million in 1998 to $9.4 million in 1999 - close to $5 million in 1Q2000 -- and you have a nice foundation for the royalty business of a company with $100m in cash, a small $3.8m commercial mortgage and only 53m shares outstanding. Note that they added 25 hard to find RF engineers in the 1st quarter ALONE.
2)WCDMA (FDD) - Assume $0 until the market takes off next year. WCDMA(FDD) is expected to hit the market before WCDMA(TDD). Again, under the comprehensive deal with IDCC, Nokia has already licensed this part of IDCC's broadband CDMA patent portfolio with royalties to start after the end of the deal in 2/2002.
3)WCDMA (TDD) - Under the terms of the co-development deal, Nokia is paying over $3m per quarter ($36+m over 3 years) in engineering services to IDCC for jointly developing the TDD version of WCDMA. IDCC retains ownership of the technology developed while Nokia gets royalty-free use of the technology. After a one-year exclusivity period given to Nokia to give Nokia a headstart in establishing first-mover advantage with the tech, IDCC retains the right to license this technology to others and to use it in their own ASICs.
Nokia/IDCC are currently harmonizing their TDD version of WCDMA with the TDD version of Siemens/China. You can track this on a slightly delayed basis at the 3GPP site.
IDCC's newest TDMA licensee is UbiNetics, a subsidiary of PA Consulting of UK. UbiNetics already has major design wins for its datacentric modules with Motorola's telematics program in Europe and Orange's wireless device program. While the UbiNetics deal currently covers IDCC's TDMA patent portfolio, it's only logical that when 3GPP completes Release 2000 of the WCDMA specs later this year, UbiNetics and IDCC will extend that licensing program to include WCDMA (FDD and TDD). Note that Orange has already been acquired by France Telecom and is now part of a GSM network with over 30 million subscribers.
4)CDMA2000 - Nokia has already licensed the IDCC IPRs in the CDMA2000 standard. Check QCOM's 10k and IDCC's 10K to verify that IDCC has indeed asserted its IPRs in CDMA2000.
Remember that IDCC sued QCOM in 1993 for violating 3 broadband CDMA patents while QCOM countersued IDCC for violating 1 QCOM patent. Under the compromise settlement in 1994, QCOM agreed to pay $5.5M (while incurring $7.5M in expenses) to license 5 IDCC patents for use under 10MHz while IDCC got ROYALTY-FREE use of 1 QCOM patent. Both IDCC and QCOM have asserted that they don't need each other's patents.
All that said, I now ask, how can any conceivable Nokia deal with QCOM possibly affect IDCC? Common sense alone tells you that QCOM,WHICH DOES NOT HAVE ANY TDMA/GSM IPRs, can not affect IDCC's prospects in any major way.
That's the last time I expect to have to spell out anything for you. Ok? Lyin' Molly. LOL. |
