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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (25497)	5/29/2000 9:30:00 AM
From: gdichaz	Read Replies (2) \| Respond to of 54805

L: You know probably better than most that the worst news is yet to come. It always is. But there is likely to be some good news from time to time also. On the substance, yes the Europeans always have, and probably always will, support the companies and "powers" that operate in Europe (even at the expense of their consumers - the voters - in Europe). And the bureaucrats and politicians will pull every trick in the book (and some not in the book) to advance their "cause" which is as ancient as mercantilism itself. The fun of this is that anyone who knows what "socialism" and "fascism" are in theory knows that the economic imperialism practiced by the EU is closer to fascism than socialism - even though the bureaucratic machinery of the EU and many of the key governments are socialist. But this is not to start an esoteric political science discussion. On Korea, suggest that this is not the end of the world. Of course the Koreans will bargain, but the brute fact is that Qualcomm holds the strong hand. The future requires some flavor of CDMA and some payment to Qualcomm - whatever happens. There is no complete doom likely. You are correct IMO that the US should not sit around idly while the Europeans play games against us but except for the US Trade Rep and her office, I suspect no one has the guts for hard ball with the Europeans. But we shall see. As for the Koreans, they are a major way for CDMA to be a major alternative in China. The question really is not what happens in Korea but the effect of that on what happens elsewhere in Asia - particularly in China. Worst case - WCDMA for 3rd gen. The end of the world, hardly. Best case CDMA 2000 and/or an evolved standard. (Eric L may with to comment further on the standards evolution beyond the fine job he just did here on that). In any case, as difficult as it is for you, be of good cheer. What will happen, will. And while it makes sense to try to influence what happens (as the Q is doing by pushing 1xMC and HDR in Korea ((and Japan)), suggest it is a little early to cry in our beer. Just the opposite, a celebration is in order that Qualcomm has the kind of management mixture it has - brilliant and hard driving in keeping at the forefront of technologies, vision, management and practical smarts, and a fine hand in the politics and even international standards committees (as Eric L pointed out) when required. Not bad IMO. Best. Cha2

To: limtex who wrote (25497)	5/29/2000 11:36:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

Someone please tell me that this isn't the worst news yet. This amounts to a concerted attempt to kill-off CDMA2000 using the combined afforts of ERICY,NOK,the EU and DoCoMo. And isn't this just the sort of thing that is not supposed to happen to a would-be Gorilla? Limtex, I agree that the news is horrible given QCOM management's AdamAnt position on WCDMA/cdma2000 royalty parity. More public dissing of QC by members/members-to-be of the purported value chain. Separately, I wonder if their kowtowing to the Chinese earlier this year may not have been the beginning of the end--i.e., opening the Pandora's box. The Koreans know what's inside (cheap royalties) and want that. QCOM has blinked to the industry on royalties; the industry is calling its bluff. QC's $20BB cash-cow in 2010 no longer seems like such a lock; and Wall St. is calling the bluff on the validity of this business model for a megacap.