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Technology Stocks : Nokia (NOK)

NOK 6.910

-0.9%

3:59 PM EST

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To: Mika Kukkanen who wrote (15417)	10/1/2001 10:34:03 AM
From: slacker711	Read Replies (2) of 34857

Ultimately, Qualcomm needs Korea more than Korea needs Qualcomm. This was true a couple of years ago....not anymore. They should have negotiated when they had more leverage. Sure Qualcomm absolutely needs Korea....but a large part (it may be the largest single item) of Korea's exports are now CDMA handsets/infrastructure. It would be like Samsung abandoning DRAM because of Rambus's patents. The person who wrote that article seems rather ill-informed about the subject matter. The gripe of the South Koreans is simple – they are annoyed that Qualcomm has granted royalty rates of 3% to Chinese CDMA manufacturers when they pay royalties of nearly 6%. 2.65% in China....7% everywhere else. It would be a big setback for cdma2000 if Korea aban-doned Qualcomm. It's too late....1x has already been rolled-out in Korea. Are they going to shut the service down? The two largest carriers already abandoned 1x in new spectrum. They used up what little leverage they had. And the Koreans have also made moves to help China develop its own TD-SCDMA standard, which seeks to bypass the royalty claims of both cdma2000 and WCDMA. Damn...too late again. Qualcomm has already begun licensing TD-SCDMA. qualcomm.com Slacker

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