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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 155.82-1.3%3:59 PM EST

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To: Art Bechhoefer who wrote (78594)8/15/2000 9:20:57 AM
From: Don Lloyd  Read Replies (1) of 152472
 
Art -

[...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...]

I suspect that you are severely overstating the importance of royalty levels as a barrier to CDMA acceptance. Of more likely significance is the human, physical and financial capital that the competitors have tied up in the alternate systems, which they are loathe to abandon.

Regards, Don
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