*Low Royalties* Since they go on saying it:
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"Today is a prosperous and flourishing age [for] GSM, but it's also the
beginning of [the transition] from 2G to 3G," said MII's Xie Linzhen.
Still, industry executives predict China's transition to 3G could be difficult. As
CDMA tests continue, companies fear that patent holder Qualcomm Inc.
(San Diego) will charge high royalties to license the technology. "All CDMA
business [is] delayed in China," said Fan of Eastcom."
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Fan should understand that they are buying a solution to the problem of how people can best talk to each other and build a WWeb.
They shouldn't worry about the cost of the plastic, the aerial, the battery or the knowhow. They should just consider the total cost. If royalties are 60% and the package is way better and cheaper than anything else, they should buy it! They shouldn't say - "Whoaah! That plastic is expensive, so let's buy a difference technological bundle which will cost a fortune". They should accept the expensive plastic and buy the cheapest overall deal.
That is cdmaOne, cdma2000 and WWeb. Of course Qualcomm will charge what the market will bear and that means a very high royalty rate,[since their technology gives a huge improvement in capacity, coverage, voice quality, battery life, handset size, ease of use, WWeb access, Globalstar backup and the road to future technology].
It should be more like 30% royalty, but it seems that for some reason Q! is going to sell the technology for only about 10% or so. What an amazing bargain.
What is baffling is why on earth the Chinese seem determined to continue so quickly down the GSM path when they could be switching to cdmaOne. I suppose in the nature of bureaucracy, bribery, communism, head office syndrome, 5 year plans, xenophobia and 'paying back the USA over Taiwan', the bosses of China don't really care about efficiency and a highly successful economy with wealthy and happy citizens. Power is more important than profit.
As long as everyone knows the cdmaOne delay is not because China is making sensible decisions. If any Chinese authorities happen to read this, maybe they could explain their decisions! Hahaahahaaahaha!!! That would be a giggle.
Same as the FCC in the USA does dumb things. They are going to lumber into gear and in a huge bureaucratic effort for which they will expect bonuses, trips, junkets and big pensions for achieving, the will allow Calling Party Pays. This will be put about as an achievement! We saw in NZ in the 1980s how when governments slightly release a throttling grip, they act as though it is an act of genius and an achievement.
I liked the comment about having zillions makes people feel really smart - in relation to Iridium - what on earth is going on there?? People think if Iridium does badly, that means Globalstar will too. While it's true that if Iridium has wild success, Globalstar would be certain to, the fact that Iridium does badly doesn't mean Globalstar will too. Globalstar has handsets for a third the price and minutes for a third the price. Maybe minutes for a tenth the price for a year or three!
Mqurice
PS: 'Whining like a 747' was not my expression - no royalties payable. I think it was John Scurci. <<EOM>> |
