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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 379.87

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Nov 11 4:00 PM EST

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To: elmatador who wrote (72753)	4/7/2011 1:05:16 PM
From: Maurice Winn	1 Recommendation Read Replies (1) of 217705

ElM, you have got it wrong. The LTE the world is adopting is not Made in China. It's a continuation of the swindle by the GSM Cartel which ripped off the world at 12% royalties instead of the 4% average which Qualcomm was charging to do the same job, but better. So people will now pay more money to do the same job because the politically backed swindling price fixing ring-fencing cartel takes the public hostage and inflicts an expensive rort on them. GSM royalties were even higher at 16%. No wonder Korea went for CDMA at 5.5% instead of GSM at 16%. Because of spectrum efficiency and a fraction of the royalty cost, many companies chose CDMA even though the economies of scale meant the price wasn't much less than GSM. The GSM Slimeball Guild managed to do wayo on a huge scale. It's surprising you, the great Wayoman, were unable to notice it. LTE at 12% royalty is still cheap compared with the overall cost of service for the life of the device. With a device costing $200, the royalty is only $24. The total cost of ownership and service over 2 years is about $40 per month x 24 months = $1000 + $200 = $1,200. So cutting the royalty by half saving $12 isn't going to make much difference to the subscribers. The quality and style of the device is much more important. China's standard is not being rolled out around the world. It's like Japan's Japan-only cellphone standards which were never used elsewhere and which limited their ability to sell around the world. Japan has been an also-ran in the cellphone industry and China will be too [other than Huawei making money as a licensed infrastructure supplier - working for low pay gets jobs]. Foxconn hires hordes in China to make iPads, iPhones and swarms of other devices. But the technology is not owned by Chinese companies. They just work for low pay making the devices. China got a special royalty rate of 2% from Qualcomm for CDMA in China. There was no need to be such cheapskates that they wanted to chisel even that derisory royalty. Because of their greedy cheap-skating, trying to chisel it more with TD-SCDMA, they ended up empty-handed. Nokia did the same - and has ended up with a 2.6% royalty [estimated] and a failing business. Serves them right. Look at the vast profits that Korea made from CDMA. That's what China should have done. As I explained time after time to TJ - CDMA2000/OFDM in 450MHz [and other frequencies] in China and China would now be hugely successful instead of an also-ran. Mqurice

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