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

To: q_long who wrote (1423)	7/26/2000 5:20:33 PM
From: slacker711	Respond to of 197028

So far it looks like LG Telecom has been the most aggresive about bypassing the ban on subsidies....makes sense since they are owned by a company that also makes handsets. etnews.co.kr\|03 Mobile phone carriers offering prepaid service ¡¡To curb a decline in the number of new subscribers, mobile communication carriers are beginning to offer prepaid service. ¡¡ ¡¡As the prices of handsets rose from nearly zero to more than 300 dollars after the abolition of company subsidies, the number of new subscribers to mobile phone service plunged. Mobile phone service providers expect the prepaid service to be popular among travellers, students and those people who want to hide their business behind a wall of anonymity. ¡¡ ¡¡Prepaid service, which is provided through prepaid calling cards or rented handsets, eliminate registration fees, basic charges and taxes, and users are not required to disclose personal information. ¡¡ ¡¡LG Telecom began this month offering prepaid cards to new subscribers. LG says 47 percent of new subscribers use prepaid cards. Korea Telecom Freetel, SK Telecom and other mobile phone service players are also considering prepaid service. ¡¡ ¡¡ Date : 2000.07.25

To: q_long who wrote (1423)	7/26/2000 7:34:17 PM
From: cfoe	Read Replies (1) \| Respond to of 197028

One disagreement with your post. spinco will be a QCOM licensee and pay QCOM the standard rate like any other ASIC manufacturer much like ERICY with infrastructure, and Kyocera with handsets. This is not the case. Spinco gets royalty-free use of the Qualcomm IPR. However, in return, QCOM gets to pick "certain" of Spinco's newly developed IPR (I guess IP they develop as they develop new chipsets) each year. So QCOM gets new IPR from Spinco in perpetuity in exchange for Spinco not having to pay royalties to QCOM. Otherwise, I think your post answer Diamond H. (#1422) very well.