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

To: pcstel who wrote (96803)	4/4/2001 12:55:30 PM
From: pcstel	Read Replies (2) \| Respond to of 152472

Getch: And while you are pondering those questions.. Here is another one for you.. You do realize that Matshshita has not subscribed to one of Qualcomm's Core W-CDMA Expanded License Agreements. NEC has: qualcomm.com Fujitsu has: qualcomm.com Tohsiba has: qualcomm.com But not Matsushita!! (Although they did sign a Modem Card License back in Jan. timeframe) Correct me if I am wrong. But, Isn't Matsushita starting to ship W-CDMA UT's to DoCoMo next month? PCSTEL

To: pcstel who wrote (96803)	4/4/2001 12:58:47 PM
From: Getch	Respond to of 152472

pcstel, We said the same thing, in different ways. QCOM, like IDCC and DoCoMo and unknown others, will be non-product producing holders of W-CDMA IPR. They will have no reason to join a W-CDMA patent pool. Any companies like this will likely need to be paid on top of any pooling agreement by W-CDMA product-producing IPR holders. Spinco, and you must change your view of Q slightly to look at this as the separate company it will become, will be a product producing W-CDMA IPR holder. If IDCC does have vital W-CDMA patents, then Spinco will need to gain access (pay) for them. According to a post from mightylakers (who last night crushed my agingjazz) Qualcomm (Spinco) is already listed by IDCC as a W-CDMA license holder, so this issue may be already settled. The question of valuation for the Spinco is yet to be seen, QCOM is doing the spin-off for competitive, royalty protective reasons. As QCOM does not need the cash, it has said there will not be an IPO, but mearly a direct spin-off to existing shareholders. For competitive purposes, the spin-off is an excellent move, because it frees QCOM of exactly the sort of morass that is coming with the negotiations of W-CDMA patent sharing. QCOM has no interest in dealing with the IDCCs and other claimants attempting to take a slice of its royalties, let the chip producing only Spinco deal with it. By splitting in two, it accomplishes its goals cleanly. This move has little effect upon IDCC and other non-product producing W-CDMA IPR holders, but a very large effect upon Nokia and other product producing IPR holders who now have to deal with both QCOM (pay) and Spinco (share). Any hope that they had of negotiating reduced royalties with QCOM by sharing their IPR instantly goes away. As far as time frames, the 2003 or 2004 is the time of quantity W-CDMA production, not trials. The funniest thing going on in Japan right now is that the field trials of CDMA 1X-EV (HDR) have been fairly quietly going on for almost a year, with the first phase already complete, and expanded trials starting right about now. W-CDMA by DoCoMo is going to be the most glorified field trial ever, but as has been pointed out here repeatedly (and by DoCoMo admission), any large scale distribution is well over a year away. Well after HDR will be available. Again; slower, but more expensive.