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

To: tekboy who wrote (9038)	4/21/2000 9:21:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 13582

Notes from CC - As usual, with disclaimers. I am not a stenographer, so I don't guarantee accuracy. Nor did I cover everything (for instance, I skipped much of the financial discussion since most of it is in the press release, or will be in the 10Q). On with the notes: 1X and HDR Deployment - 1X MC will be the first 3g system to deploy. Late this year in Korea and Japan (DDI/IDO in existing spectrum), most others next year. The current carriers are anxious to get the extra voice capacity which comes with 1X. There is (or will be? I don't remember) an HDR demo in rural North Carolina. Standardization activities - The standardization process for 1X/HDR (I don't really understand this terminology, but I assume it just means HDR) started Mar 27 with support from Lucent and 12 additional supporters. In answer to some questions, they said that The DS standard is still in flux. Finally, someone asked a question mentioning that the EU has proposed to ETSI that it open up to all standards (I have very little idea what that really means). ASIC Development - Q! is developing ASICs for both MC and DS CDMA, but it is not possible to complete a DS chipset until the standard settles down. Samples have shipped for the 5000 series (1X MC), and they have 100% of the 1X infrastructure ASIC market (note that this is like Microsoft owning the Operating System - it gives them something of an advantage in the application (i.e. handset ASICs and software), although probably nowhere near as big since the interface is standardized). The 1X chipsets will start shipping in the second half of the year. The 4500 series will be for HDR modems, but I didn't note the ship date. Finally, the RFMD samples shipped in April, and are expected to start production volumes in Sept with new versions of 3100 and the 3300. (The ASP is in the range of $3.50 per Power Amp). CDMA and ASIC growth - Expect both ASIC volume and revenues to be greater next quarter than they were in Fiscal Q1 (i.e. >14.5M units). Expectation is mid 60 to low 70 million CDMA handset to sell this year, and perhaps 40% growth next year. Note that ASIC ASP went up this last quarter because of a greater volume of CSM chips vs MSM chips. Omnitracs - Shipped 16460 units last Q for total units now at >335,000. EQCOM is a unit providing fleet management services in Europe, and a deal was signed with Vodaphone to provide PanEuropean data for EQCOM. G* - Q! shipped 11,000 phones last quarter, and has a capacity to ship up to 14,000 phones per month. They ship to order (i.e. no backlog) 3G Licenses - Hitachi signed a license for 3G handsets and infrastructure, but there were some additional license for wireless data and test equipment. (First I've heard of Qualcomm being involved in wireless data as separate from voice. Perhaps this is the HDR and 1X modem manufacturers?) Motorola settlement - MOT signed a license where as long as they only use the pre-95 patents they can continue to pay the same, relatively low, royalty rate as per their previous agreement. In addition they can use the post 95 patents at the industry standard royalty rate (i.e. higher) for MC-CDMA, and CDMAOne (did they mention HDR?), but not for DS-CDMA. The number of post 95 patents they use is immaterial - the rate instantly clicks higher. (For those who aren't aware, this all started when MOT sued Q! over a clamshell handset patent, but it seems to have come back to haunt them.)