Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (47575)	10/6/2001 11:48:06 AM
From: Eric L	Read Replies (1) \| Respond to of 54805

Mucho Maas, << do you know what the royalty situation is between QCOM and DoCoMo? >> Not exactly. I can not conceive of DoCoMo paying royalties to QCOM (but I might be overlooking something), and of course DoCoMo (like NOK, ERICY and others have essential IP in WCDMA and they will in turn at some point in time potentially have their own revenue stream). However .... somebody is going to be paying royalties to QCOM for both handsets and infra, and that (small now) royalty stream should have already started to flow. << is QCOM receiving royalties on their 3G phones? >> I suspect, although initial shipments are what, on the order of 30,000 units with some 300,000 units in the first 6 months then ramping from there. The royalties now would be paid by NEC and Mastsushita (Panasonic) since they are the subscriber equipment suppliers. Their will be several others when everything ramps. The traditional major suppliers aren't interested in delivering to non-foward compatible standards or delivering small volumes so we won't see revenue from Nokia and Ericsonny handsets till late 2002 earliest. I am assuming NEC has paid some infra royalties since the FOMA net is commercial, but this may be somewhat dependent on DoCoMo/NEC T&C's and related to when NEC recognizes revenue. DoCoMo is really spreading around their infra business but are VERY quiet about who is getting what, and the recipients are also VERY quiet about it. I suspect Ericsson has already shipped forward compatible core network infra but that may not immediately accrue royalty payments to QCOM. DoCoMo (indirectly through its OEMs) should start to be a major source of royalty revenue when they are confident enough in WCDMA to start the infra buildout on a large scale with forward compatible UMTS 'R99' gear. That time may not be too far away. The complicated part is that nobody knows with any degree of certainty what infra components QCOM gets paid on or what the percentage royalty is. - Eric -