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

To: Ruffian who wrote (8405)	4/7/2000 1:18:00 PM
From: LBstocks	Read Replies (4) \| Respond to of 13582

Prudential report on ERICY endorsement of HDR and 1X dated 4/7/00> QCOM: Endorsement of HDR CDMA 3G Technology by Ericsson - Ericsson endorses IX and HDR cdma2000 technologies over other technologies - Ericsson joining Lucent and QUALCOMM in proposing 1XHDR as a 3 G standard to the 3GPP2 - Ericsson would be using QUALCOMM?s 1X and HDR chipset - Expect CDMA 3G technology to come sooner than other 3G technology in the US - Operators are increasing capital spending on CDMA - Ericsson to complete its network systems offering to include CDMA systems-positive for QUALCOMM - Reiterate our STRONG BUY rating on QCOM At Ericsson?s CDMA Day Analyst Meeting held on April 6, 2000, the Company highlighted its CDMA system product offerings which would include systems that are configurable to support IX and HDR 3G technology. The Company said that they would be using QUALCOMM?s chips for their CDMA offering. The Company also presented 1XHDR as their ?favorite? cdma2000 technology. Furthermore, Ericsson also announced that together with Lucent, they are supporting QUALCOMM in proposing cdma2000 1XHDR to the 3GPP2. We view this announcement as a positive endorsement and adoption of QUALCOMM?s CDMA technology. We are also pleased to see that the discussion surrounding CDMA and QUALCOMM was in a positive and amiable tone. A roadmap provided by the Company also indicated that HDR would come in the second half of 2002, which we believe would be earlier than EDGE, the TDMA and GSM 3G standard. CDMA capital infrastructure spending has also increased from 23% in 1998 to 26% in 1999, with increased spending expected in 2000. Ericsson estimates that their market share target for CDMA infrastructure is about 15-20% of total CDMA capital spending. With Ericsson?s over 40% of the world's wireless networks market share, we believe that this is a conservative estimate. Its new CDMA systems would complete its network systems offering to include all major technology - GSM, TDMA and PDC. As the developer and owner of CDMA technology, we view the news today as positive for QUALCOMM, as they would continue to benefit from the market adoption and strong demand for CDMA. Accordingly, we reiterate our STRONG BUY rating on QCOM.

To: Ruffian who wrote (8405)	4/7/2000 1:37:00 PM
From: A.L. Reagan	Read Replies (2) \| Respond to of 13582

Are you sure that Nokia is holding lots of important DS-WCDMA patents? To All: That's the real crux of the issue. They sure make a lot of noise that they do, but I'm not sure who knows the specifics and can evaluate the merits. My point is that QCOM partisans are risking getting really blind-sided by assuming NOK is run by a bunch of FUD meistering idiots who are emotionally fighting Hagfish War II. IMO, believing that QCOM has an absolute lock on the situation may also be naive. If there were not a distinct probability from NOK's viewpoint that they can mitigate the royalty situation (and disadvantage the Asian h.s. makers) by so vigorously promoting the DS mode, they would not be expending the resources to do so. They also would not be risking their entire corporate credibility on this effort if QCOM has an easy blocking mechanism, and neither would carriers being going along with W-CDMA if this were true. In titanic struggles like this, it is a mistake to underestimate one's opponent, IMO. P.S. I agree with some others that we will ultimately see an ERICY-like x-license settlement, and my take on the current FUD wars is that it is posturing for the x-license royalty negotiations to come. Q is definitely in the driver's seat, but it will end up having to share some of the road with NOK, in order to extend the entire highway.