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To: DlphcOracl who wrote (28550)	7/22/2000 9:32:07 PM
From: Thomas Mercer-Hursh	Respond to of 54805

First, I believe they will not receive the same royalty payments from deployment of W-CDMA. And you believe this why? Everything that I have seen and every contract we have heard of extends the same current royalty rate to WCDMA. Second, they will lose significant revenue if they cannot sell their chipsets for CDMA-2000 3G wireless handsets. QCOM's future would be somewhat less stellar without the sale of any ASICs, but what makes you think that they will not be a major competitor for whatever flavor CDMA happens to come about. At worst, they may have to pay some royalties for the chips they sell, but then so will everyone else and everyone else will be paying the CDMA royalties, so I see no reason not to expect QCOM to be a major player in the ASIC future, whether their preferred form of CDMA triumphs or not. While QCOM will always have some sort of revenue stream from royalties, whether CDMA-2000 or W-CDMA, brisk sales of their CDMA chipsets is nearly as important to QCOM's future stock price appreciation Based on? See above.