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To: Mika Kukkanen who wrote (6588)	2/17/2000 11:29:00 AM
From: DWB	Respond to of 13582

Mika, "The main suppliers/vendors all cross license GSM IPR so there is virtually no add-on cost to the customer (operator), where as IS-95 has one big fat company claiming royalties for IPR and so the cost is higher and past on to the customer." Which in the first case forms a barrier to entry for new vendors, since if you don't have offsetting IPR, you are screwed. But in the CDMA case, it's every man/woman/company for themselves, and the playing field is level. DWB Q2.5K/Y2K+5

To: Mika Kukkanen who wrote (6588)	2/17/2000 11:34:00 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 13582

Still not quite getting the IPR issue right. The main suppliers/vendors all cross license GSM IPR so there is virtually no add-on cost to the customer While incumbent GSM makers may benefit from canceling out of royalties, I think the point is, What is the cost for a new mfr without GSM IPR to offer? For a Chinese mfr, they might have to get licenses from many GSM IPR holders, negotiate royalties for each. In contrast, they can get one license with QCOM and pay one royalty. Are the GSM royalties (and the PITA factor of dealing with many players) higher than the royalty rates such a mfr would pay to QCOM for CDMA? If so, then CDMA royalties do not seem so expensive. Think of it from the Chinese perspective. Maybe their only goal isn't to be a market; maybe they want to "make". Who is going to make it easier for them to "make"? What is the track record for them w/r/t GSM? Lots of money for NOK/MOT/ERICY. Not so much for the Chinese.