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

To: grinder965 who wrote (93304)	2/5/2001 12:08:04 PM
From: cfoe	Read Replies (4) \| Respond to of 152472

how does each licensee pay the royalties to the Q for the infra equipment. From what I have been able to discern, infra royalties are recognized as revenue by QCOM when the infra vendors pay them; and the infra vendors do not pay royalties to QCOM until the SPs pay them. So, since most if not all of the infra buildouts are financed by the infra vendors, QCOM's royalty revenue recognition and receipt is deferred for some time. The good news is that once the WCDMA infra buildout begins, QCOM will begin to "accrue" a nice annuity. Do they pay a % of the total equipment selling price like they do for handsets? I have been led to believe the royalty is on the total infra cost, but there must be some cap. I will be working on an update to my earnings model, so if someone else can shed more light on these issues, it would be helpful.