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

To: foundation who wrote (12766)	7/12/2001 7:39:08 AM
From: foundation	Read Replies (1) \| Respond to of 197281

Money waste on (Korean equipment producers) CDMA licenses By Lee, Eun-yong Thursday, July 12, 2001 Domestic telecommunications equipment providers have reportedly wasted big money on their code division multiple access (CDMA) licenses since they have put them to little use. Industrial sources said on July 11 that as many as 50 to 60 CDMA equipment producers have either acquired CDMA license directly from U.S. Qualcomm or signed serve contracts with existing licensees. However, more than a half of them have not developed or sold even a single product manufactured using the license. In particular, out of 22 domestic firms that bought the license directly from Qualcomm, even the most successful four or five companies haven't posted any real revenues from utilizing CDMA license. Accordingly, prepayment of technical loyalties ranging from $ 700 thousand to $ 1.75 million are all reckoned as loss cost in the financial statements of those firms. Worse, the amount of loss stemming from license purchase will be much bigger when losses from start-ups developing CDMA solutions such as wireless modems and subscriber identification modules are included in the estimation. "It is very hard to find firms that have succeeded in developing and selling CDMA-related goods with an exception of mobile terminal and converter producers, but those start-ups who have attracted investment with a rosy prospect for the mobile telecommunications sector are now in a bind, unable to give up on their CDMA businesses," said an industrial expert. He added that he was worried about a vicious cycle of money waste. In the meantime, Korean telecommunications equipment manufacturers paid a total $ 651.77 million in CDMA loyalties for the period from 1995 through June last year. This is more than an annual average of 100 million dollar and the figure is rising 150 percent every year due to increased sales of domestic CDMA-based terminals etienglish.com