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

QCOM 151.59

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Jan 30 9:30 AM EST

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From: DanD	4/5/2007 4:02:14 PM
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Analysts said the payment has implications for the contract-renewal negotiations now underway, as it clearly suggests Nokia intends to pay a far lower royalty rate in the future than the 3% it's been paying under the existing agreement. Citigroup said news of the $20 million payment suggests Nokia believes its royalty obligation to cover 3G licenses for one quarter amounts to a rate of about 0.6%. tinyurl.com Check my math: 0.6% is 1/5 of 3%. Right? So a full payment would be $100 million. That is $400 million annually from NOK alone. The market for CDMA/WCDMA is what? 20-30% saturated? (existing cell phone customers) In a few years NOK could be paying 1-2 billion in Royalties. No wonder NOK doesn't mind legal fees. Dan D.

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