Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 180.30

-0.3%

10:25 AM EST

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To: jackmore who wrote (136343)	1/2/2005 3:38:20 PM
From: quartersawyer	Read Replies (1) of 152472

"many [Korean]companies have only recently started making GSM phones since competition for code division multiple access, or CDMA, standard phones has become too high, mainly due to cheap phones made in China." Conveniently, no mention of the royalty disadvantage to Chinese CDMA exporters. About four months ago, ChinaNex newsletter revealed this: "Holders of GSM patents may propose a 5% charge for Chinese handset companies, but the news is difficult to verify because negotiations between the two sides are behind closed doors. There were reports that the charge may be as high as 8-13% of the handset retail price. Nonetheless, it is certain that the time of free use of GSM patents is over for Chinese handset companies. Earlier this year a group of companies including Philips, Nokia, and Motorola proposed to charge a fee for GSM technology where thet control 85%.... An unnamed foreign handset company said 5% is after 'considerable' compromise and the best offer it can make.... One way to avoid royalty is to acquire technology through joint ventures...." Looks like they originally had not much fear that the Chinese manufacturers would be much competition to themselves, especially weighed against the overall 2G buildout advantage vs. CDMA with its royalty obligations. No such counterbalance in Korea, so they happily paid "under 10%". The Asians seem at least as prone as the Europeans of 8 years ago to think of Qualcomm as "sneaky". Irrational pain in the ass.

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