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

To: cfoe who wrote (11931)	6/9/2000 1:16:00 PM
From: puzzlecraft	Read Replies (1) \| Respond to of 13582

One thing that was revealed to me in QCOM's latest PR is that there are at least two levels of licensing. "The Company welcomes the eight domestic Chinese manufacturers to date that have signed CDMA intellectual property research and development agreements, under which QUALCOMM will provide chipsets and system software, and relevant documentation required for CDMA research and development... These agreements allow the manufacturers to develop handset and base station prototypes based on IS-95 A/B and 1x standards." "The manufacturers have the option to secure commercial licenses at any time during the terms of their R&D agreements." At this point, presumably, the handset and base station manufacturers would begin buying ASICs. I suspect ASIC manufacturing licensing is considerably different from these two levels of agreements. John

To: cfoe who wrote (11931)	6/9/2000 2:01:00 PM
From: gdichaz	Read Replies (2) \| Respond to of 13582

cfoent: One point you might wish to consider in the risk /reward ratio of helping Chinese companies with dotting the i's and crossing the t's to make CDMA work well, is that Qualcomm is making it possible for the Chinese companies it is working with to not only supply a CDMA roll out in China, but also enter the export market once they have a license from Qualcomm to do so. While this may carry some risk, it could be a major advantage for CDMA in China. As many of you know, CDMA phones and equipment are a major export earner for the Koreans. An example not lost on the Chinese (particulaly since they have just singled out phones from Korea to China as a vulnerable point to punish the Koreans for the Korean action on garlic). The Europeans have just finished fighting for maximum European repeat European ownership in all aspects of telecom in China. The old mercantile (protection for European companies again) approach. Once more that fact is not lost on the Chinese. It is just that as I have often joked, inertia is the driving force in many bureaucracies, government owned companies, quasi government owned companies, plain ole public companies and even do gooder groups. Inertia may not be a force in physics, but it is in the real world. And note that the Europeans themselves are not beyond some tactics which are somewhat less than open and/or "fair" (by some definitions), nor sadly is our gov't as in the sheep/lamb situation Maurice cites. Best. Chaz