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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!
QCOM 174.770.0%9:30 AM EST

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To: Maurice Winn who wrote (1213)11/25/1996 2:30:00 AM
From: Uncle Mikey   of 1819
 
Maurice - I have some more questions you may be able to answer:

1. How comprehensive is QCOM's grasp of CDMA derived profits? I would imagine that the highest profits would come from handsets or other equipment that QCOM produces itself. But do you have any idea on the relative profitability of license fees or royalties? Will QCOM be more of a competitor with MOT and LU than they are partners?

2. By "royalties", is it meant that QCOM will receive an ongoing percentage of the sales received by the carriers?

3. What about the evolution of CDMA? What if MOT or LU develop improvements along the way? Would they be MOT or LU's exclusively or would QCOM still have a stake?

The technology seems great, and the potential market is enormous, but it seems to me that a very big part of the challenge for QCOM will be to stay current and continue to get a piece of the pie. Your comments?

Thanks in advance for your help!

Mike
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