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To: Labrador who wrote (6188)	7/9/2000 9:35:23 PM
From: Labrador	Read Replies (1) \| Respond to of 34857

Demand for GSM Royalties Burdening Mobile Phone Makers 2000/06/28(Wed) 17:42 Demand for GSM Royalties Burdening Mobile Phone Makers Mobile phone manufacturers using the Global System for Mobile Communications (GSM) mode are under fire as foreign GSM patent holders are demanding sizable royalties for their licenses. According to the industry yesterday, global communications companies are targeting Samsung Electronics for royalty payment for its use of their technology. For Samsung the negotiation processes are quite different from the one it had with Qualcomm for the use of Code Division Multiple Access (CDMA). There are 17 companies that utilize the globally recognized standard technology for GSM, including Motorola, Ericsson and Nokia, however Qualcomm alone holds most of the rights for CDMA. ``This year foreign firms are demanding royalties for GSM licensing and the amount accounts for 15 percent of the product price,'' a source from Samsung Electronics said. The industry said foreign companies were waiting for local providers to grow dependent on their technology before making financial demands. A U.S. market research company Dataquest said Samsung Electronics held 4th place in the global mobile phone market last year and 8th place in the sales of GSM method wireless phones. To cope with royalty burdens, Samsung Electronics is trying to barter cross licensing of its applied technology in wireless communication and semiconductors technology. ``Samsung Electronics holds licenses in wireless communication and semiconductor technologies, so it can arrange cross licensing, to lower its royalty payments,'' an industry source said. Furthermore, LG Information & Communication (11650) is gearing up to introduce a GSM method phone in the second half of this year and is preparing for negotiations with foreign license holders. ``When they are through with Samsung Electronics, we are next, so we have already calculated royalties into our production cost,'' a source from LG said. 211.169.240.72

To: Labrador who wrote (6188)	7/9/2000 11:38:57 PM
From: Gus	Read Replies (1) \| Respond to of 34857

Tsk, tsk, tsk. You're just refusing to acknowledge anything that doesn't fit your cozy scenario of CDMA2000 rolling out first over WCDMA, which in itself is a dubious distinction. First, read the Intel paper again to get an idea of the differences between WCDMA and CDMA2000. Put one way, CDMA2000 was designed to layer over a CDMAOne network while WCDMA was designed to layer over a TDMA/GSM network. You are watching a rigged horse race that is only happening in your mind if you expect CDMA2000 to win anything on the basis of time-to-market. WCDMA field trials vastly outnumber CDMA2000 field trials so how you can say with a straight face that WCDMA is still in the labs? LOL. 1xRTT PLUS HDR may meet the threshold definitions of 3G and may be a viable option for a CDMAOne operator, but it is not a viable option for a TDMA or GSM operator. Remember, the roadmap for a CDMAOne operator involves 1xRTT, 3xRTT and then CDMA2000 with HDR ostensibly as the wild card. Lastly, even if 1xRTT + HDR comes out first, you still don't have the roaming revenues, the larger addressable markets and the economies of scale of GSM/TDMA, GPRS, EDGE and WCDMA. That ultimately will deter QCOM from pursuing litigation, which seems to be the only way for it to stop the rollout of WCDMA in Japan next year given their representations at the ITU to make their relevant patents available on a reasonable and non-discriminatory basis. It's just too bad that after one pre-announcement, you're heading into a quarter -- note the drop in South Korean handset sales from 1.7m in May to <400k in June -- which, in turn, will shed more light into state of the shortfall for this quarter -- the peak ordering season for the peak selling season in the December quarter!!! Add to that the steady announcements of 100+ GPRS/EDGE contracts and 60+ WCDMA contract wins over the next 12 months, the severe technical damage in QCOM chart (TA-following institutional money is serious money), and you're looking at unbelievably dead money over there at QCOM. Why continue to bargain with the realities of the facts on the ground? Why allow yourself to be the toy of marketmakers who can smell the wavering sense of conviction and the large pockets of capitulation in that stock? Do you know what typically happens to losing stocks with deteriorating fundamentals (perceived or real) when the mutual funds start closing their books in the December quarter? Best of luck to you.