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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

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To: Don Mosher who wrote (32944)	2/28/2003 9:28:12 AM
From: Art Bechhoefer	Read Replies (2) of 197231

Re: Competition between CDMA2000 and GSM/WCDMA/UMTS. While it may be an exaggeration to characterize this as war, one could certainly argue that the GSM proponents believe in planned obsolescense. This strategy has been used successfully by the likes of General Motors to inhibit innovation and gain the maximum investment return from older technology. The most successful way to deal with a strategy geared to hanging on to older technology as long as possible is to price the new technology low enough to discourage continued use of the more expensive older technology. This seems to be what QUALCOMM has been doing in China through the use of an extremely low royalty rate for domestic sales. A couple of years ago, I suggested that it might be to the advantage of QUALCOMM to reduce royalty rates for all licensees. Or they could reduce the rates for a period of one or two years in order to motivate laggards to switch. Personally, I'd like to see royalties of two percent or so in a market with 80 percent CDMA and 20 percent GSM, instead of the reverse. Art

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