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

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To: rkral who wrote (66318)	7/19/2007 4:50:10 PM
From: jackmore	Read Replies (2) of 197016

Re: Bright sides Under the agreement, Verizon Wireless will make payments to Broadcom at a rate of $6.00 for each 1xEV-DO handset, PDA or data card sold after the effective date, subject to a maximum payment of $40M per calendar quarter and a lifetime maximum payment of $200M. Another bright side may be the possibility that the deal doesn't go into effect until after (1) the court of appeals denies a stay, and (2) the pres fails to veto by August 6. In other words, this is truly an insurance policy paid for with a commitment to work with BRCM on some DSL, WiFi, and blah, blah, blah other stuff, and a promise to pay the $6 per handset if (1) and (2) transpire. If there is a stay or a veto, the deal may self destruct. Of course BRCM is trying to increase the likelihood of (1) and (2) by "granting" this license. Will it work? If they "grant" a similar deal to Sprint, it just might. No matter what, they deserve high marks for thinking outside the box.

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