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

To: jackmore who wrote (3579)	10/10/2000 11:20:11 AM
From: slacker711	Read Replies (1) \| Respond to of 197244

I believe this is a major factor, if not THE major factor, for the carriers stated preference. This only makes sense for SK Telecom. It has already been reported that NTT Docomo is looking to take a stake in them. The smallest carrier (LG) is a subsidiary of LG Telecom and they are hoping to leverage the experience of building out a W-CDMA for LG to win contracts overseas. They dont seem to be a very big player in IS-95A infrastructure....so W-CDMA could only help. The odd decision has been made by KT Telecom. Everything would point to them using CDMA2000. They are large enough to fight 2 W-CDMA carriers and could roll-out service well before their competitors....also Qualcomm has a small stake in them. I havent been able to think of a convincing argument on why they would choose W-CDMA.....except that they expect to make more money from it than CDMA2000. The only other possible explanation is that this is an elaborate ruse to force Qualcomm to lower royalties. This doesnt make sense anymore....since Q is spinning off the ASIC division. I dont think that anything will cause Q to lower royalties now.... Slacker

To: jackmore who wrote (3579)	10/10/2000 10:16:08 PM
From: JGoren	Respond to of 197244

Let's take a truly insidious view. The wcdma carriers will end up declaring foul when they have to pay 15-18% royalty rates, making their infrastructure cost 10% above those of the cdma2000 carrier. They then will want a government subsidy to take away the advantage of the carrier which goes cdma2000. The carriers or handset makers will then want a subsidy to make up for, again, a 10% cost disadvantage. Lemme get this straight: The Korean government will be asked to subsidize a rich Japanese company? The Korean government needs to wake up or it will be led down the garden path. We are only in the second scene of a three act play. Not sure whether it is a tragedy or a comedy.