Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.80

+0.3%

Dec 5 9:30 AM EST

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To: Kent Rattey who wrote (88695)	12/2/2000 12:58:47 PM
From: ehopper	Read Replies (5) of 152472

I believe I do understand SPINCO. SPINCO: Is QCT's attempt to isolate itself from the GSM royalties. That is, if SPINCO wants to manufacture WCDMA chips is pays QCT CDMA royalties and NOK/ERICY/GSM guys royalties. That means that the likelihood that SPINCO WCDMA chips will make it into handsets by manufacturer's who have a piece of the GSM/WCDMA development (NOK,ERICY, MOT,NTT DOCOMO) is slim. Even more so the liklihood of WCDMA chips getting into basestation equipment , where many manufacturer's have/or willsoon have their own solution is next to nill. 1) In the end SPINCO is not competitive in the WCDMA market and hence makes money off of CDMA2000 chipset. 2) QCT collects higher royalties from CDMA2000 and lower (how much is still TBD)from WCDMA BUT WCDMA gains a foothold in North America. So the risk is that CDMA2000 network growth stagnates and declines over time as the whole world goes WCDMA. So it ispossible that SPINCO is a marginal player at best and QCT has lower royalties. Hence my concern.

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