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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (513)	7/9/2000 5:18:11 PM
From: foundation	Read Replies (1) \| Respond to of 197610

"...they prefer to adopt the wireless-code-division-multiple-access, or WCDMA, technology from Finland's Nokia Corp. and Sweden's Telefon AB L.M. Ericsson rather than Qualcomm's CDMA2000 technology. All three companies,however, said their preferences may change. The main reason appears to be cost, they said. Qualcomm holds patents for both WCDMA and CDMA2000, but officials at the three companies said Qualcomm asks for higher royalties than Nokia and Ericsson. "It would save us money to use Nokia and Ericsson's technology over Qualcomm's if we decide to use WCDMA," said Won Hong Sik, a spokesman for SK Telecom. ---------- This rationale makes no sense. Literally. Why say this? The reason for them to do this for roaming (telecoms) and getting a piece of Europe's and Japan's 3G handset market (Samsung, Hitachi). ---------- "When the companies place their bids, each bidder must decide whether it is going to adopt the CDMA2000 or the WCDMA technology," said a spokesman at the ministry. "So we will know [in] September what technology each company will choose." ---------- So, this generally meaningless opera will stretch on for months.... The stock will be played hard. ---------- regards, blg

To: Jon Koplik who wrote (513)	7/9/2000 7:58:50 PM
From: idler	Respond to of 197610

This article and the sentiments it expresses seems to be a complete and total crock of sh-t. We already know from other sources that adoption of WCDMA would be vastly more expensive, not less expensive, for any carrier already using CMDA. We also know that Qualcomm asks for less, not more, royalties than Nokia and Ericcson. I think it is fairly clear that this is all a dance designed to bargain down the royalties and/or extract some other concession from Qualcomm in return for remaining with CDMA-2000, which, after all, is a known quantity for Qualcomm.

To: Jon Koplik who wrote (513)	7/9/2000 8:05:18 PM
From: Islander	Respond to of 197610

No brainer. CDMA-2000 is the one. QCOM a screaming buy. eom

To: Jon Koplik who wrote (513)	7/9/2000 8:08:08 PM
From: Labrador	Respond to of 197610

>>but officials at the three companies said Qualcomm asks for higher royalties than Nokia and Ericsson. "It would save us money to use Nokia and Ericsson's technology over Qualcomm's if we decide to use WCDMA," said Won Hong Sik, a spokesman for SK Telecom. << Huh -- If they just use CDMA2000, they only pay the QCOM royalty. NOK and ERICY cannot even offer W-CDMA without a royalty agreement with QCOM.

To: Jon Koplik who wrote (513)	7/10/2000 8:39:47 AM
From: Jon Koplik	Respond to of 197610

Text of new (corrected) WSJ article on Korea / carriers' choices. (Again -- sorry if already posted). South Korean Firms Lean Against New Qualcomm Wireless Technology By HAE WON CHOI, PUI-WING TAM and KHANH T.L. TRAN Staff Reporters of THE WALL STREET JOURNAL SEOUL, South Korea -- The top three cellular-phone service providers in South Korea are leaning against adopting Qualcomm Inc.'s next-generation technology for mobile telecommunications services, but they said a final decision hasn't yet been reached. SK Telecom Co., Korea Telecom Corp. and LG Telecom Co., which are all vying to get licenses from the South Korean government to provide next-generation services, said they prefer to adopt the wireless code division multiple access, or WCDMA, technology from Finland's Nokia Corp. and Sweden's Telefon AB L.M. Ericsson rather than from Qualcomm, based in San Diego. All three, however, said their preferences may change. The three companies said they favor WCDMA against Qualcomm's CDMA2000 because they expect that the WCDMA will be more widely used globally than CDMA2000. "We want to adopt a technology that can be used across the world," said Lee Jung Hwan, a spokesman at LG Telecom. The other reason is cost, they said. "It would save us money to use Nokia and Ericsson's technology over Qualcomm's if we decide to use the WCDMA," said Won Hong Sik, an assistant manager at the public relations team at SK Telecom. All of South Korea's cellular phone services uses Qualcomm's CDMA technology, and royalties from Korea have been a major source of revenue for Qualcomm. Officials who were able to talk about the royalty rates at Qualcomm in Seoul couldn't be reached for comment. South Korea's Ministry of Information and Communication will be giving three licenses for next-generation mobile services, called IMT-2000, by year end and companies are expected to place their bids by end of September. "When the companies place their bids, each bidder must decide whether it is going to adopt the CDMA2000 or the WCDMA technology," a spokesman at the ministry said. "So we will know by September what technology each company will choose." WCDMA, developed by Nokia and Ericsson, competes with Qualcomm's CDMA2000 in the global wireless industry, company officials said. Both technologies offer a coterie of sophisticated technological access including high-speed Internet access and Web browsing through cellular phones. Christine Trimble, a Qualcomm spokeswoman said Qualcomm "doesn't believe an official technology decision has been made in Korea," adding that the company was "in ongoing conversations with our customers there and with the government." Ms. Trimble also said Qualcomm "expects Korean operators will support both modes -- WCDMA and CDMA2000." She noted that Qualcomm holds patents for both WCDMA and CDMA2000 and has already extended licensing agreements for these, so that licensees pay the same royalty rates no matter which CDMA standard is used. Some analysts said that whatever the decision from Korea's main wireless operators, it wouldn't have a huge impact on Qualcomm. Brian Modoff, an analyst at Deutsche Bank Alex Brown in San Francisco, said that Qualcomm still benefits no matter what version of CDMA is used in Korea because the company gains royalties "regardless of which version of mobile CDMA an operator chooses to deploy." Nonetheless, shares of Qualcomm slid in heavy trading on Friday following the reports from Korea. As of 4 p.m. on the Nasdaq Stock Market, the stock was down $5.0625, or 8.2%, to $56.625, down 8.2% from its previous day close of $61.6875. Write to Hae Won Choi at haewon.choi@wsj.com, Pui-Wing Tam at pui-wing.tam@wsj.com and Khanh T.L. Tran at khanh.tran@wsj.com Copyright © 2000 Dow Jones & Company, Inc. All Rights Reserved.