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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 163.32

+2.3%

Nov 21 9:30 AM EST

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To: tero kuittinen who wrote (14744)	9/9/1998 10:02:00 PM
From: Maurice Winn	Read Replies (1) of 152472

Tero, you wondered: "If Qualcomm really believes in free competition, let's have free competition. Let Qualcomm build a 3G solution compatible with IS-95 and Nokia/Ericsson can counter with their 3G model that is compatible with GSM. Of course Qualcomm would get some reasonable licensing fee for W-CDMA IPR - just like any other company with W-CDMA IPR. Let the best man win. Let the market decide. How come free competition among different standards suddenly becomes undesirable when it starts to scare Qualcomm? If four digital standards in USA was supposed to be a great idea, how come W-CDMA, the upgrade of GSM, is now being forced into accommodating niche standards?" Free competition includes inventing your own stuff. Qualcomm has invented it. Free competition doesn't start by using the competitor's creative skills. Competition is creative skills. You wonder why the vapourwear standard that King Ericsson is producing should be forced into a niche standard with royalties to Qualcomm - [I know you actually put it the other way around, that Qualcomm's cdma2000 is the niche standard]. That is because L M Ericsson doesn't own the technology. As Michael [one of them] said, this is going round and round and the suspicion can grow that you don't really want to understand. Qualcomm has invented a cdmaOne overlay of GSM and will also be creating a cdma2000 overlay. L M Ericsson is just going to have to get used to the idea of paying Qualcomm a huge fee for the use of cdma technology or stand by and watch GSM gradually be absorbed into the Qualcomm world. Of course, L M Ericsson can invent their own cmda for mobile and compete with cdma2000 for GSM overlays. Good luck, they'll need it. It should be obvious to you that if a small company simply gives away its inventions and creativity to a huge competitor, it would be unable to compete in the absence of any special other advantage. Qualcomm's main advantage is ownership of cdmaOne and related technology. Your hypothetical competition is silly. Mqurice

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