Qualcomm(QCOM) -> SpinCo Message Board

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Technology Stocks : Qualcomm(QCOM) -> SpinCo

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To: waverider who wrote (5)	7/26/2000 4:55:00 PM
From: w molloy	Read Replies (5) of 172

>> So the spin off company makes chips and sells them to other companies for their phone Despite what Jacobs said yesterday, I think the reality of the situation will be that SpinCo pays royalty to QCOM and this royalty will be factored into the price of the chips SpinCo sells onto (say) NOK. SpinCo will seeded with 'enough' QCOM IPR to allow it to play in the WCDMA patent pool (something Jacobs said QCOM would never do). This rather neat solution allows QCOM to participate in WCDMA by proxy, while continueing to promote CDMA2000 (a standard it controls). Any direct promotion of UMTS-WCDMA by QCOM would be quite damaging to CDMA2000, as US network operators might then decide to roll out UMTS for 3G, rather than CDMA2000 IMHO of course w.

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