Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 137.31

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3:59 PM EST

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To: Uncle Mikey who wrote (271)	12/5/1996 1:08:00 AM
From: Philip Merryman	of 152472

Mr. McElhatton: Ericsson, as you may already know, manufactures a competing wireless technology to CDMA called GSM. They in fact are one of the largest manufacturers of GSM equipment, both in terms of GSM infrastructure and GSM phones. Up to now they have refused to endorse Qualcomm's implementation of CDMA and consequently are not a licensee of Qualcomm's CDMA technology. Now, however, that CDMA is being commercially implemented, such a policy by Ericsson towards CDMA may cause them to eventually become a much smaller supplier of wireless systems. It may be in recognition of such a possibility that they have approached Qualcomm. In doing so, though, since they have been such an ardent critic of Qualcomm's implementation of CDMA for so long, they risk repudiating their own product -- GSM -- and admitting they are not a technological leader (and never were). This, of course, would cause their customers to reconsider their choice of GSM and of Ericsson. This suit by Ericsson may be a roundabout way to license Qualcomm's implementation of CDMA while at the same time pretending they were an original developer of CDMA all along. Philip Merryman

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