Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (81392)	9/24/2000 6:53:15 PM
From: Art Bechhoefer	Respond to of 152472

Spinco IPO date of November 6: Thanks for your detective work. Here's what I think it means: 1. Comes after the release of fiscal 2000 earnings on November 2. Allows company to talk about the coming spinoff and the number of shares, valuation, etc., at the conference call following release of earnings. 2. Would not occur at all if the company didn't already have a combined GSM/CDMA/WCDMA chip that WORKS! Yes, that works, unlike all the experiments going on in Europe or China, and unlike TD-SCDMA. By offering a production model chip now, the new company can accommodate service providers who want to upgrade to 3G. Being first on the block with a reasonably priced chip that works can mean a lot down the road. 3. QCOM officials are convinced that anyone else producing a chip using CDMA, including the Siemens-China venture using TD-SCDMA, will have to pay royalties to QCOM. I'm not so sure but am open to being convinced. QCOM and IDC many years ago settled a patent suit. Part of the settlement was for IDC to get a cross license for broadband CDMA, which IDC then marketed to firms like Siemens. I'm not convinced that this "flavor" of CDMA will work without some additional features that might be covered by more recent QCOM patents. At any rate, if Spinco has a working chip, in contrast to the mere theory or test models of others, the company is off and running in November. Art Bechhoefer