Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.24

-2.4%

Jan 13 3:59 PM EST

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To: jackmore who wrote (78593)	8/15/2000 9:02:00 AM
From: Art Bechhoefer	Read Replies (4) of 152472

Although improved display technology would widen the market for CDMA data access, it would apply equally well to other systems. I've come to the conclusion that the best strategy to implement CDMA is for QUALCOMM to cut its royalty rates in half! Yes, that's right--by 50 percent. This would be tantamount to an offer no competitor could refuse. It would so reduce the cost of obtaining CDMA technology that anyone trying to get by on inferior systems, such as the TDMA or GSM systems, would be left in the dust with higher expenses, worse performance. . . and declining customer base. The short term loss in royalties would be made up by the long term switch to CDMA by every wireless service provider in the world, including in Europe. Once CDMA becomes the dominant system, QUALCOMM can then consider whether an increase in royalty rates is warranted. It's clear that competitors will keep on searching for any way to get around paying royalties, mostly by using inferior technology and hoping that no one else will offer anything better. Cutting the royalty rate will send a simple message: Change to CDMA or risk losing all your current customers. Art Bechhoefer

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