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

QCOM 163.32

+2.3%

Nov 21 3:59 PM EST

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To: Art Bechhoefer who wrote (3164)	9/17/2000 7:22:01 PM
From: Maurice Winn	Read Replies (1) of 196740

No, it's not contradictory. Remember, 3 Bucks Full! One for the master [the government], one for the dame [Q!] and one for the little boy who lived down the lane [Service Providers]. If Q! or the government give away some of what they own, the other two will take it. Or if two of them give it away as in the case of beauty contests without buildout requirements then the other will grab the profits. Q! is now stuck, committed and locked-in to royalty deals so they can't raise their royalties much, even for new entrants or the new entrant won't be able to compete with earlier entrants and will simply not buy a licence. If Q! cuts the royalty, the spectrum will sell at higher prices and the end price per minute to WWeb subscribers won't change. If Q! gives away the technology, the end price to WWeb users won't change but governments will get more money for spectrum. If technology costs drop to zero because of competition and technology developments and Q! gives away their intellectual property instead of charging royalties and the governments have already given the spectrum away to the service providers, then the price per minute to WWeb users will NOT go down. It will simply mean more profit for the service providers. The key point is that spectrum is limited and every photon can only be used once and it will be sold to the highest bidder! Service Providers will raise the price of the service so that they maximize their income which will mean keeping the price high enough so that there is no huge 'busy signal' problem. No contradiction. This is all about spectrum shortage. Which, going back 11 years, is what Q! set out to reduce and has succeeded mightily in doing and far, far more importantly than almost anybody thought [because the WWeb was barely a glimmer in anyone's eye in 1990]. Mqurice PS: Edit..maybe I got master and dame reversed. Doesn't matter though.

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