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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: JohnG who wrote (37097)	7/24/1999 10:33:00 AM
From: gdichaz	Respond to of 152472

JohnG: As you probably know the Q's ownership position is not the key to judging the gain the Q may have from G* success - if that happens. The Q has the contract to supply all the CDMA/analog/G* handsets. Ericsson and Telital share contract for GSM/G* handsets. The Q provides the G* basestations. G* uses the Q's CDMA (called "satellite CDMA") and G* has an exclusive contract for that as I recall. And "satellite" CDMA has same advantages communicating with a satellite as garden variety CDMA has in terrestrial use. Etc. Frankly would not worry much re conversion of receivables to debt - a minor issue compared to the other ways G's success (or choke failure) will affect the Q. Cheers. Onward and upward. :-) Chaz PS And if G works out, there is a more powerful G* (second generation) in design now. PPS Quick hint. Anyone seriously interested in G* will find out much of what they wish to know from Maurice Winn's posts on the SI G* thread. (In fact you might enjoy a few of his other comments thrown in in passing - as is part of his charm)

To: JohnG who wrote (37097)	7/24/1999 11:27:00 AM
From: Jenne	Read Replies (1) \| Respond to of 152472

Technology News Sat, 24 Jul 1999, 11:23am EDT Qualcomm Entitled to License for Digital Phone Service in U.S., Court Says By Greg Stohr and Heather Fleming Qualcomm Entitled to PCS License, Appeals Court Says (Update3) (Closes shares.) Washington, July 23 (Bloomberg) -- Qualcomm Inc., developer of the world's second-most popular cellular-phone technology, is entitled to a U.S. license to offer digital wireless phone service, a U.S. appeals court ruled. Siding with Qualcomm in a seven-year-old fight, the U.S. Court of Appeals for the District of Columbia Circuit told the Federal Communications Commission ''to take prompt action to identify a suitable spectrum and award Qualcomm the license for it.'' The FCC rejected in 1992 Qualcomm's original application to offer personal communications services in Miami. Because Sprint Spectrum LP and PrimeCo Personal Communications LP have since won licenses for that area, the three-judge panel suggested the FCC should find alternative spectrum for Qualcomm. The court said the FCC should have awarded Qualcomm a so- called pioneer's preference -- a special legal status that gives companies licenses at a significant discount to promote innovation. Today's ruling clears the way for Qualcomm to get a multimillion dollar discount on a license even though Congress has since scrapped the special preferences. There's probably no ''good fix'' for Qualcomm because part of the value of a pioneer preference was being first to market, said Scott Cleland, managing director of Legg Mason Inc.'s Precursor Group. Today, there are nine wireless phone competitors in most markets. ''It's going to be extremely hard to unscramble this egg and put it back together the way it should have been seven years ago,'' he said. Qualcomm shares climbed 4 3/16 to 154 11/16. Impact Unclear The impact of the ruling for Qualcomm is unclear because ''the problem lies in the fact that the licenses are gone,'' said Christopher Larsen, a wireless analyst with Prudential Securities. ''What we've told the commission is we want to take a suitable equivalent'' to the Miami license the company sought originally, said Kevin Kelley, senior vice president of external affairs for Qualcomm. ''The question at this point is what does the commission have available?'' The FCC had no comment. San Diego, California-based QualComm announced earlier this week that fiscal third-quarter profit and sales surged to a record on strong demand for its cell phones and the chips that run them. The company doesn't provide cellular or PCS service, so entering into the business would be a new venture. The pioneer's preference licenses limit how long the company must hold them. Kelley said, ''it's less than clear'' what those restrictions are.