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

QCOM 175.10

-3.1%

2:53 PM EST

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To: Jon Koplik who wrote (44969)	3/10/2005 12:40:21 AM
From: Jim Mullens	of 196438

Jon- Re: WCDMA royalties and Mr. Sagawa's interesting comments- Snips>>>>>>>>>> But some analysts say Nokia's 3G prospects are much brighter than they appear -- and that could boost its stock price. They argue that Nokia, as one of the primary inventors of the most popular radio technology used in 3G phones, won't have to pay anywhere near as much to license the intellectual property underpinning 3G as many of its rivals, such as LG Electronics Inc. of South Korea. Those royalties can represent a major cost in the production of a 3G phone. But since Nokia itself holds many of those rights, the company could have a cost advantage of about 15% over some competitors. "It's an enormous boon to Nokia," says Paul Sagawa, an analyst in New York with stock-research firm Sanford C. Bernstein, which is a unit of Alliance Capital Management LP. He recommends buying Nokia stock. "Much of the investment community seems to discount the sustainability of Nokia's profitability," Mr. Sagawa says. "But that is based on a misunderstanding of the strength of Nokia's intellectual-property position and the barrier it creates for would-be competitors." But a company with nothing to trade may end up paying 25% of the wholesale cost of a 3G phone in royalties, Mr. Sagawa estimates. That includes the cost of licensing both WCDMA technology and the Global System for Mobile, or GSM, communications technology that will allow the handset to also work on existing networks. <<<<<<<<<<<<<< No mention of Qualcomm’s pass thru agreements. Wonder if they pertain to the GSM stuff as well as the CDMA IPR? Wonder if Mr. Sagawa is aware of such? Perhaps Qualcomm's pass true agreements might be “a little more” advantageous than previously thought- driving the masses to QCOM chipsets? Wonder what happened to NOK’s and others patent pool initiative limiting WCDMA royalty rates to 5%? Seems someone might be trying to stick it to the Koreans / Chinese? Don’t think that’s going to fly very well with the Chinese.

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