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

To: Maurice Winn who wrote (5781)	12/27/2000 5:09:53 PM
From: slacker711	Read Replies (1) \| Respond to of 196996

Royalties for infrastructure are more like 1% than the 5% or so for subscriber equipment. The 1% being on the wholesale price of the basestation component. That's as I recall something from 5 years ago. Does anyone know what the price of a single 2G basestation is? Somewhere in my memory, I seem to recall reading that it was somewhere around $100,000...however, this seems a little high. Nokia has a slide in their 3G networks presentation which is called W-CDMA delivery capacity. They have a graph which shows the ramp up of capacity for the W-CDMA infrastructure market....along with a table that lists the basestation totals for 2001 and 2002. This is shown as 100,000 and 300,000 respectively. As Nokia is assuming a 35% marketshare for itself, I assume that they have a pretty good handle on these numbers. This would work out to $100m and $300m for the next two years in just W-CDMA infrastructure royalties. As far as I know, none of this is reflected in analyst estimates. Slacker

To: Maurice Winn who wrote (5781)	12/27/2000 5:35:55 PM
From: coransky	Read Replies (1) \| Respond to of 196996

Maurice I asked the gentleman at investor relations at least four(4) times if the rate was the same for infrastrucure and I was told it was. I could not pin him down to the 5% number but he said that was close.

To: Maurice Winn who wrote (5781)	12/27/2000 6:32:09 PM
From: Eric L	Respond to of 196996

Maurice, << Royalties for infrastructure are more like 1% than the 5% or so for subscriber equipment. The 1% being on the wholesale price of the basestation component. >> That is close to my recall. My (fuzzy) recall is that back around the time of the ERICY accord in March of 1999 (give or take a few months), Gregg Powers offered some reasonably detailed explanations of how QUALCOMM was paid on the BSS component of CDMA infrastructure, and I think Clark Hare commented as well. Someone might want to back track their posts on the "Coming of Range" thread for that time frame. The same may NOT apply to UMTS (and then again it might). Regardless UMTS introduces a whole new vocabulary that differs from traditional GSM and CDMA, and strictly speaking there no longer is a BSS. Within the Universal Mobile Telecommunications System (UMTS) the UMTS Terrestrial Radio Access System (UTRA) is the air interface and infrastructure consists of the Evolved GSM Core Network and the UMTS Terrestrial Radio Access System Network (UTRAN). UTRAN breaks down grossly into these components (and I've broken out the corresponding GSM nomenclature). * Radio Network Subsystems (RNS): the access parts of the UMTS network (comparison to GSM: RNS is analogous to the Base Station System - BSS). * Each RNS consists of a Radio Network Controller (RNC) and one or more Node Bs (the RNC has the same general function as a Base Station Controller ('BSC' in GSM; a Node B could be compared with the Base Transceiver System ('BTS'in GSM). I think it is pretty clear that QUALCOMM will be paid on the Mobile Equipment (ME) along the lines they are currently paid for the subscriber equipment in the CDG cdmaOne/cdma2000 world, but there is likely to be some (much) controversy about the UTRAN. - Eric -