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Technology Stocks : Nokia (NOK)
NOK 6.865+0.4%10:37 AM EST
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To: Peter Sherman who wrote (8939)1/28/2001 8:56:02 AM
From: gdichaz  Read Replies (3) of 34857
 
Peter Sherman: One puzzle is what Nokia has to lose - what is the downside - of an agreement with Qualcomm for 1x, 1xEV, and the various flavors of W-CDMA?

Thinking about it what are the costs?

The major cost is an upfront charge.

Then there would be royalty fees which would only apply when phones were sold in a commercial setting. Surely that would be a minor percentage of the total proceeds.

In the meantime there are markets (small in comparison to GSM sure, but growing and there is 3rd gen coming which is CDMA as a practical matter).

So the question remains - why wont Nokia sign?

There seems to be no valid monetary reason.

Is it pride and/or loss of "face"?

Isn't this the classical case of shooting yourself in the foot?

Best.

Chaz
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