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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 174.01

-0.3%

Nov 14 9:30 AM EST

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To: JMD who wrote (1596)	7/30/2000 10:44:09 PM
From: cfoe	Read Replies (2) of 196649

Why did the Mighty Q have to become two little q's to stamp out GSM ASICs? I will try and answer your question. Making and selling are two different things. Even if QCOM could make GSM chips now, they would need a license to sell them from a GSM license holder. Just like anyone could make a CDMA chip now (if they knew how), but could not offer it to the market without a license from QCOM. With ASIC div and QCOM as one, when QCOM goes for GSM rights, holders were probably asking for royalty-free x-license to ALL of QCOM's CDMA patents. QCOM (and us stockholders) consider this an mighty unfair trade. All rights to the technology future wireless will be based on for rights to the old technology? Come on! QCOM's answer: spin off chip div into separate company and give it enough essential/necessary/useful CDMA IPR to trade for necessary GSM rights. Retain rest of essential/necessary/useful CDMA IPR in QCOM so GSMers still need to pay QCOM a royalty. Neat move. Did this answer the question?

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