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To: Uncle Frank who wrote (16493)	1/25/2000 10:15:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 54805

01/25/00 Conf Call - Selected Transcribed Bytes - China qualcomm.com Timemark: 40:05 Question: Could you give us an update on what's going on in terms of the negotiations for CDMA in the Chinese market. Thank you. Timemark: 41:09 IJ: In China, we're very actively carrying on discussions. I think we've made substantial progress but I can't say we have managed to conclude those negotiations. They are active however, and it's just always difficult to say "This is the date we expect it to complete". I think there is alot of interest both on the Chinese side, certainly on our side, of trying to have this negotiation completed quickly, and we ourselves are putting alot of resources into trying to make that happen. We have recently assigned a new country manager in China. We have groups moving frequently between San Diego and China to bring in the latest information, etc. We're talking with a variety of Chinese manufacturers as well, and trying to set the framework for rapid deployment once this negotiation is completed, but I don't have a date to announce. Timemark: 43:10 Question: So in China, do you have any anticipation of when you'll be able to role systems out over there, when they'll role them out? Timemark: 43:38 IJ: With regard to China, there are some expansions of systems under way. I think you may have seen some announcements of contracts that have been awarded to expand some of the existing systems. Great Wall, I believe, has been active. Unicom has announced plans to award contracts shortly. They have been gathering information, but again, I don't have a date. There is basically a requirement by MII, the Ministry of Information & Industry to conclude any negotiation with Qualcomm before really allowing a major increase over there. And so, in some sense, there is a negotiation among several parties, including government parties, and so one is never quite sure when that will complete. Clearly, huge market potential in China, very very exciting, but on top of that very large potential one needs to make some profits, so we're trying to balance those 2 items. Question: So do you think by the end of the first half of this year you might have this done? IJ: I would be terribly disappointed if it weren't, yes.

To: Uncle Frank who wrote (16493)	1/25/2000 10:16:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 54805

01/25/00 Conf Call - Selected Transcribed Bytes - 1xRTT qualcomm.com Timemark: 28:40 Question: Would it be your expectation that Sprint PCS and other operators would be unwilling to buy phones that don't have that added functionality as we saw in the 4th quarter with the unwillingness to buy the Nokia phones which did not, in this case, have a web browser? IJ: The 1x is rather interesting in that it does offer the potential of roughly doubling the voice capacity per antennae sector. And, that gives a tremendous potential financial improvement for the operators. On the other hand, it only occurs if they have phones that are capable of 1x when the infrastructure is capable of 1x. And so what we see happening is a very rapid movement by the operators, we believe, to try to obtain phones with that capability as early as possible, even if the infrastructure is not quite ready. Because, when it is turned on, they will get that significant improvement right away. Of course, above and beyond that, they also get a significant data capability. And so, I always think of that as being a "no brainer" as far as their adopting it. But in fact, I think there are strong incentives to move to it as quickly as possible. Timemark: 57:00 Question: Just one other clarification on the chip side, 1xrt, could you give us a sense of when initial commercial shipments will start, and then when you see commercial volumes beginning. I think there were a couple of different dates given. QCOM: There will be sampling of those chipsets this quarter on both the MSM side as well as the CSM side, which is right on schedule. So we're very happy the development. And then, if trials will happen in the United States and Korea in the first half of the year, and particularly in South Korea, they hope to turn on commercial systems, as Irwin said, as early as July, and our guess would be that sometime during the second half of the year we'll see some commercial 1x handsets in South Korea. But in the United States, it'll probably be sometime next year.