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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 169.99-2.3%12:11 PM EST

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To: jpbrody who wrote (15572)9/26/1998 6:34:00 PM
From: The Prophet   of 152472
 
Here is the letter, FYI:

A WIRELESS STANDARD THAT
MAKES SENSE FOR
EVERYONE

''Cell phones: Europe made the right call'' (Science & Technology, Sept. 7)
indicates that, in reference to proposals for third-generation wireless standards,
top officers at Qualcomm Inc. ''say that the Europeans have tweaked the
technology in a way that will reduce Qualcomm's royalty streams from its
patents.'' No officer of Qualcomm believes nor has made such a statement.
Increasing the number of CDMA [code division multiple access] subscribers
worldwide can only increase royalties.

Qualcomm and other member companies of the CDMA Development Group
have proposed a third-generation standard (CDMA2000) that is the natural
evolution of current systems. We believe that the European Telecommunications
Standards Institute's proposed standard (W-CDMA) is crafted intentionally to
minimize any compatibility with these current-generation systems. We do not
believe nor did we indicate that W-CDMA would in any way reduce royalties
payable to Qualcomm.

Qualcomm has stated that it would license its CDMA intellectual property rights
on fair, reasonable, and nondiscriminatory terms only for standards meeting the
following three principles:

(1) A single, converged worldwide CDMA standard should be selected for the
third generation.

(2) The converged CDMA standard must accommodate equally the two
dominant network standards in use today (IS-41 and GSM-MAP).

(3) Disputes on specific technological points should be resolved by selecting the
proposal that either is demonstrably superior in terms of performance, features, or
cost, or, in the case of alternatives with no demonstrable material difference, the
choice that is most compatible with existing technology.

Qualcomm remains committed to a vision for the next century that will yield the
best wireless communications in terms of performance and cost for millions of
subscribers worldwide.

Irwin M. Jacobs
Chairman and CEO
Qualcomm Inc.
San Diego
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