*** Whining like 747s over loyalties {sic} *** Message 15812915
<...According to Chinese sources, the negotiation over CDMA royalty fees between Qualcomm and Chinese telecom equipment makers is close to being settled at 2.65 percent per terminal unit, and 700,000 dollars in technology fees subject to prepayment.
Qualcomm, however, stated its intention to stick to the 5.25 percent in royalty rate, which it has been applying to Korean companies (applicable to products sold in the Korean market) to Korea-China joint venture companies, raising concerns about discriminatory application of royalty fees.
For now, Korean telecom equipment makers, including Samsung Electronics and LG Electronics, are busy trying to figure out Qualcomm's real intention. If Qualcomm insists on 5.25 percent royalty fees in Korea-China joint ventures, that could work as a stumbling block to Korean companies' foray into the Chinese terminal market. >
Gee, they don't give up! Let me explain something to any Koreans reading this. You have been making a huge fortune out of CDMA which was provided to you by Irwin Jacobs and Co. Have some bloody manners and stop chiseling him. He didn't work all his life, producing something which will lift the world hugely, to hand it to you pack of greedy bludgers on a plate.
I think he should INCREASE the royalties to about 13.14159% for anyone who isn't signed up now. That is still way cheaper than the GSM Guild charges for their obsolete GSM technology which everyone [including you] is going to abandon in favour of CDMA. If you don't want to be in the CDMA market, see you later; there are plenty of people who have been happy to agree to the very low royalties offered so far and they'll be happy to fill any space you leave.
You won't understand this bit, but royalties are too low as proven by the huge prices obtained for 3G spectrum, even in your own country. The huge prices for spectrum show that the saving in spectrum, which CDMA can offer, is worth a vast fortune. If QUALCOMM had charged 13.14159% for the CDMA technology, then the bids for spectrum would have had to be lower or the bidder would make much less profit. So even if QUALCOMM had lowered the royalty rate, it wouldn't have made any saving for the service providers - the saving would have been bid away to get spectrum.
Read that paragraph again and again until you get it through your thick head! [Okay, some of you non-Korean readers should read it twice too].
What it means, is that QUALCOMM has grossly undercharged on the loyalties so the governments have been able to collect that money left on the table by QUALCOMM. So give up your foolish dream of lower prices. You either want to be in the business or you can take a hike. Your bad manners towards a venerated [and venerable] elder are culturally offensive. Maybe even racist! [To use some fashionable if meaningless argument which I don't take seriously myself].
QUALCOMM could charge even more, but unfortunately, to get support for CDMA, they made a lot of early agreements at leally low loyalty lates [about 5 or 6% according to some sources and even lower for Korean companies for own-use in Korea]. So if they charge too much for newcomers, the newcomers won't be able to compete and won't enter the market. Which would be a shame, because the more the merrier and the better for CDMA and customers.
Nokia, being a very high-margin handset marketer can afford to pay a higher rate, so they should pay, oh, let's say 18% and it would still be worth it to them to enter the CDMA 3G market. They'll have to switch their VW40 {sometimes called W-CDMA} to cdma2000, which they have nearly done; they'll have to do that because VW40 was always VapourWear to con GSM users into thinking the King had a plan for GSM-GPRS-EDGE-W-CDMA ...hahahahhh... they can't even make GPRS work, let alone the Bleeding EDGE and the no-handoff unsynchronized VW40. The King is naked! His cloak of gold and silver is non-existent. So stop admiring it. He hasn't got any pants on.
So you can forget about using that W-CDMA nonsense as a lever to lower loyalty rates too. Just admit that W-CDMA is dead in the water, convert it to cdma2000 and provide the service and make the money.
Anyway, you should very quickly sign up for CDMA at the requested loyalty lates and be rery rery grateful.
Trying this public negotiation makes you look greedy. It's also rude. Not to mention ignorant. It probably breaks a confidentiality agreement too.
Korean phone makers got a special deal for locally-produced and sold handsets. That was what the court case was about where QUALCOMM had to pay over some royalties for PCS phones [they believed the royalties only applied to cellular frequencies - which seemed odd to me at the time]. So, if China gets a special rate, then it would be on a similar basis to the Korean agreement. So, what's wrong with that? Not that I think China should get a special rate.
Anyway, I don't want to be rude, but it's getting very annoying the way CDMA has not been allowed to provide telephony anywhere, anytime, at low prices, with high quality with internet access as well, all over the world. Europe has conducted an absurd trade-restrictive campaign. Don't be as foolish as they are. Just pay the requested rates and get on with the job. The requested rates are very, very reasonable and in fact, too cheap. You better grab them while you can [somebody from QUALCOMM might read this and realize they've undersold their brilliant achievements then double the price].
Mqurice
PS: VW40 = snake oil, antiseize lubricant, VW = vapourware [vapour-wear because the King isn't wearing any beautiful cloak]
These comments also apply to the Chinese commentators who think they should get a 2% royalty deal. No dice mate! Stick with spectrally and technologically inefficient and obsolete GSM at 18% loyalty if you want to be loyal to that way of life. Good luck, you'll need it. You have been offered a superlative technology at a bargain basement price. Accept such a generous offer. Irwin is doing this for the fun of it and for the good of the world, which doesn't mean he's going to give it away. He needs the money to develop the next great things. You should buy some QUALCOMM shares. |
