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

To: quidditch who wrote (11020)	5/30/2000 9:34:00 AM
From: slacker711	Read Replies (1) \| Respond to of 13582

Ericy offer to reduce "royalty rates" to Korean carriers: given that the stakes are huge, is it possible Ericy could be "packaging" its effective "royalty rate" with a reduction in its budgeted operating margins to offer a reduced "rate" deal? i.e., Ericy passes through Q's effective rate, discounted by Ericy margin squeeze. I know this might get lost because of the China news today....but I would like to get other people's thoughts. I decided to due a little bit of DD on this issue. I went straight to the source....the CC on March 26th after the sale of the infrastructure division. I found something I hadnt heard before....I dont think the agreement between Ericsson and Qualcomm (at least the one made that day) included infrastructure. Our mantra of having the same royalties across all modes might only apply to handsets. The following link is to the CC....the part I am talking about starts at 27:30. corporate-ir.net This might explain how Ericsson is advertising lower royalties on W-CDMA. It might be true....in a limited sense (only applies to infrastructure). Note that after IJ says that this agreement applies only to "telephones" that Thornley comes in and states that infrastructure has always been a small component of royalties. I think a call to IR may be in order.... Slacker