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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 179.02+3.7%3:59 PM EST
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To: foundation who wrote (30891)1/8/2003 4:56:48 PM
From: Art Bechhoefer  Read Replies (1) of 196497
 
It's clear that the main reason for the Chinese government pushing TD-SCDMA is to create a standard that will help Chinese companies serve the Chinese market. Even if TD-SCDMA is inferior to CDMA2000, it offers Chinese companies a near monopoly in equipment sales (including cooperating companies like Siemens). In a market as large as China, they can do things that would look irrational in smaller markets.

As long as QUALCOMM can receive some royalties from TD-SCDMA, the outcome should be satisfactory. However, if CDMA2000 proves to be a lower cost standard, then one would think that competition would eventually prevail, unless the Chinese government provides some sort of economic advantage to TD-SCDMA, including more spectrum.

Art
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