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: Win-Lose-Draw who wrote (88701)	12/2/2000 1:45:25 PM
From: Don Lloyd	Read Replies (1) of 152472

W-L-D - I think I may be, let me give it a shot...I gather the concern is that QCOM essentially getting only IP royalties in a world gone WCDMA is not nearly as lucrative position as getting those same royalties AND chipset sales in a world gone CDMA2000. IJ saying the IP royalty rate is true on the surface, but disregards whatever non-CDMA royatlies QCOM may have to pay out on non-CDMA2000 chipsets, and this pay out is why QCOM (SpinCo, whoever) may not be particularly competitive in the WCDMA chipset market. I'm not making any claims here, just taking my best shot at summarizing the recent conversation. Corrections more than welcome. AFAIK, the key point you're missing is that QCOM will NOT be paying out any royalties on chipsets because it will NOT be manufacturing ANY chipsets. One of the purposes of the spinoff is to encapsulate all the requirements for non-QCOM IP in the spinoff. Regards, Don

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