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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: DaveMG who wrote (30094)5/17/1999 2:43:00 AM
From: Bux  Read Replies (2) of 152472
 
While it's hard to say what will happen over the next few years, the placement of CDMA at the center of all 3G proposals, and the fact that these standards are being negotiated today, essentially secures the future in this regard.

Good post Dave, I agree except for the above. I think the future of the Q is secured not by the 3G proposals or current negotiations, but by the fact that the Q's IPR is at the heart of any CDMA system and there is no better way to transmit voice and especially data than CDMA.

The recent agreement with ERICY was nothing more than a fast and painless way out of a lawsuit (with little or no merit) and a quick way to unload the infrastructure business to a company with the capacity to help expand the CDMA market.

While the phrase "proprietary control" has no formal definition, I would say it is inaccurate to say the Q has given this up. True, they do not have the authority to decide what the 3G standard(s) will be, but they never did. They have retained the royalties of CDMA and I am convinced 3G will be based upon CDMA. If CDMA is bastardized on purpose or through inexperience, the Q retains the right to compete with such systems, all the while collecting royalties from these competitors. What could be better?

Bux
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