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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: straight life who wrote (3470)	11/22/1999 8:36:00 AM
From: Harvey Rosenkrantz	Respond to of 13582

I didn't see ERICY in the list of vendors receiving rfp's.

To: straight life who wrote (3470)	11/22/1999 9:11:00 AM
From: quidditch	Respond to of 13582

straight life--interesting China article: two observations: Qualcomm last year offered discounts on royalty fees to Chinese manufacturers as an incentive for China to open the market to CDMA, industry analysts said. But in March, Qualcomm agreed to sell its equipment manufacturing division to Ericsson of Sweden and -- to the annoyance of the Chinese -- rescinded the discount offer. In the context of the discussion last night on the ERICY-Q dispute on the pricing of the infra division, it strikes me that perhaps Q rescinded the offer in order not to commit Ericy to a Q-negotiated discount and to free up Ericy to make its own deal in China re. infrastructure buildout. Now, maybe Q's negotiations with Zhu and Wu have taken an unpredictable turn that Ericy does not like. Pity. technology transfer in addition to royalty rates being the two issues keeping China and Q at odds. It has always struck me that the technology transfer restrictions are the most important here. [On royalties, Q will offer some break in rates and reap the benefits of sheer numbers.] Analogizing to software, it has been China's practice to insist on receiving the source codes whenever they permit entry to a foreign manufacturer hoping to capitalize on the Chinese domestic market. Article in WSJ this AM re doing business in PRC and opening of telecommunications market in PRC. Only 41% of 70 joint enterprises are profitable. Steve