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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Eric L who wrote (52910)	11/6/2002 5:44:41 PM
From: slacker711	Read Replies (1) of 54805

They didn't make a decision to "reduce" royalties. Are you saying that if CDMA2000 had never been developed that these companies would be charging the same royalty rate that they are now planning? If so, I am going to have to disagree. The primary holders of W-CDMA IPR would have been more than willing to cross-license each other but they would then have gone out and charged all the other players a much higher royalty rate than they are currently planning. Nokia and Ericsson would love to be able to keep the primary players in W-CDMA the same as in GSM. The royalty rates need to stay low for the primary players (to allow a varied market to develop) but after that there isnt much need to have 15-20 W-CDMA manufacturers. Much better for these companies (excepting Docomo) to limit the number of competitors. The fact that CDMA2000 requires a 5% royalty rate (I'll believe today's comments when companies start to sign up), puts a cap on what W-CDMA can charge. Slacker

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