Great post John. And I sincerely hope that one day we can convert you to a bull; not because we've fallen to 12, but because the growth occasioned by 1x begins to show q over q sequential gains too impressive to ignore. Thats the bet I've made all along. And one reason I'm willing to hang in is that everything IMJ predicted in the face of overwhelming ridicule and character assassination from the Lords of GSM and the resulting conventional wisdom has come true. Perhaps I can revisit some of these items for you.
1. GSM World-CDMA violates the laws of physics and it can never work. IMJ should be investigated for securities fraud for even taking this company public.
IMJ- Not only does it work, but it affords the possibilty of radical gains in performance over TDMA/GSM in transitioning to the next generation of mobile telephony.
2.GSM World- Well , ok. It works, but not any better than GSM, and certainly does not offer the improvements sufficient to justify the costs of abandoning the worldwide installed base of GSM systems.
IMJ- Yes it does, and it can be enhanced to permit rapid transmission of data and a host of other applications. GSM affords no such enhancements.
3. GSM World- Hey QCOM, we agree, and in fact we've been working on a form of CDMA vastly superior to your own for years, a form so different that your patents have little, if any, applicability to it. What's more, so that we won't have to use the dreaded acronym CDMA, we'll call it UMTS (or maybe even 3GSM; yeah, that's the ticket). We will loudly and vocally proclaim to the business press that UMTS is going to be the defacto world standard to be adopted by GSM carriers everywhere,that CDMA 2000 will therefore only be installed in isolated pockets of the world, and we don't need a license from QCOM.
IMJ- All you have done is to steal the core ideas upon which CDMA is based, and which were developed and patented by us, and gerry-rigged onto the top of it some needless alterations having little to do with enhancing the system but much to do with creating unnecessary engineering nightmares, and which in most cases we considered and and rejected years ago for those very reasons. So we'll see you in court.
4. GSM World- WCDMA is imminent. Meanwhile GPRS is HERE as an interim step which is as good or better than CDMA 2000.
IMJ- No its not,and it won't be here for years because of the aforementioned difficulties you have needlessly built into the standard. And no, GPRS is neither here nor anywhere close to being the functional equivalent of CDMA 2000.
5. GSM World- OK QCOM. You were right about the patent thingy. But we control the world and the world is still going to WCDMA, and you won't have anywhere near the market share for the sale of WCDMA chips as you do for CDMA 2000 chips. Whats more, we really wonder whether there is even demand for 3g. In all likelihood GPRS (if we can only get the darn thing to work)will be sufficient for years, and perhaps forever.
IMJ- WCDMA is essentially CDMA. We've already forgotten more about CDMA than you will ever know about it. We are the ones, if anybody can, who will make it work. And we expect to have an "interesting" share of the market for WCDMA chipsales. Also, given the time to market and functionality advantages CDMA 2000 will not be an island, but will be internationally pervasive by the time you finally get WCDMA to work, at which point you will be the one trying to dethrone an installed base, albeit with an inferior product which cannot deliver data anywhere nearly as efficiently as CDMA 2000. As for demand, there is tremendous demand for a system that actually works and provides the consumer with a meaningful and practically helpful experience, as in Korea.
6. CW- There aren't any useful applications for 3G. Hence there will be no demand.
IMJ-BREW.
7.CW- Poor old CDMA 2000 users. They can't roam.
IMJ- Multi-mode, multi-channel chipsets.
John- In short, QCOM's enemies have changed their story more times than most people change underwear as Dr. Jacobs has serially disproven one of their lies after another. LT shareholders have an overabundance of historical precedents as the basis for our undiluted (by options of otherwise) confidence in his scientific vision, and his scientific and moral integrity.
If QCOM is indeed abusing the use of options to a materially greater degree than has,say, MSFT, Intel, Dell or other computer based companies that have managed to create enormous and real shareholder wealth over decades, that concerns me. I have no time, and for that matter the accounting and SEC filing expertise to make those comparisons. By this post, however, I wanted to give you a sense of our perspective, and patience, regarding QCOM.
The future will tell whether this exceptional faith in management engendered by this experience has blinded us to reality, or has instead enabled us to keep our focus on the revolutionizing potential of CDMA in the midst of all of the detritus, fear , interference and uncertainty created by this historic market collapse. I, for one, genuinely appreciate the contribution you have made to this thread, and hope you will remain in our family, cantankerous though it is, as we work our way through interesting and challenging times. |
