To: Nichols who wrote (542 ) 3/23/2000 5:06:00 PM From: Boplicity Read Replies (1) | Respond to
The key to understanding the below news release today was that there has been some question that the equipment suppliers would or would not be paying royalties to QCOM for the W-CDMA which they are calling Direct Spread (DS ) now. The below news release put this question to rest some what. So it's very good news. Still I feel once people realize that 3G royalty stream time table has not changed, the stock will come back down or level out again. Also, we heard that CHina has released billions, I'm not clear if that is WONs or dollars, still a large amount, so they can begin the bidding process that was halted for the build out of China's CDMA system again. I haven't seen a USA news release on this so who is to say. Hitachi's CDMA agreement has now been expanded to grant Hitachi a license under QUALCOMM's essential CDMA patent portfolio to develop, manufacture and sell infrastructure and subscriber equipment for all modes of the third-generation CDMA standard, including Multi-Carrier (MC), formerly cdma2000, and Direct Spread (DS), formerly W-CDMA. Under the terms of the amendment, Hitachi has agreed to pay QUALCOMM a multi-million dollar up-front license fee and ongoing royalties as Hitachi begins selling third-generation CDMA equipment. The royalties payable by Hitachi are the same irrespective of the licensed CDMA standard.
