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

To: mightylakers who wrote (22447)	5/9/2002 6:47:40 PM
From: Gaffer	Respond to of 196986

Qualcomm article from FT Lex: Qualcomm Published: May 9 2002 20:01 \| Last Updated: May 9 2002 20:53 Anyone for pure-play exposure to new generation mobile technologies? Qualcomm, down 45 per cent since January 1, should interest contrarian investors. The stock fell again on Thursday following Nokia's call for a 5 per cent ceiling on royalty payments for third-generation handsets. But without cause. Qualcomm owns must-have patents, and has already tied Nokia into a licencing deal. Nokia was warning fellow equipment manufacturers and mobile operators, which also own patents, not to get greedy when they all already have to pay Qualcomm for the core technology. Meanwhile, positive news from Japan, where KDDI signed up 330,000 customers for a service based on Qualcomm's CDMA 1X technology in April, its first month of operation. This should offset weakness at Qualcomm's South Korean customers SKT and Korea Freetel arising from another clampdown on handset subsidies. Their success should encourage US operators Verizon and Sprint PCS to push ahead with their CDMA 1X launches this summer. In time all CDMA 1X operators will migrate to Qualcomm's full 3G solution CDMA 2000. The success of CDMA 1X in Japan and South Korea should ensure CDMAu2000 survives and prospers, while stimulating investment in the alternative solution W-CDMA, on which Qualcomm also earns royalties. The transition to 3G is under way at last. At 23 times calendar 2003 earnings, and 24 times this year's free cash flow, the stock looks attractive. news.ft.com

To: mightylakers who wrote (22447)	5/9/2002 8:18:22 PM
From: Kayaker	Respond to of 196986

...to be fair Nok never said it owns 25% of essential patents, it just said registered patents. Most of the press articles say registered patents rather than essential patents, but the original NOKIA press release says something different.... Nokia is the number one IPR holder in the WCDMA standard and technology, with more than 25% of the essential patents registered so far with the European Telecommunications Standards Institute (ETSI).... press.nokia.com

To: mightylakers who wrote (22447)	5/9/2002 9:11:18 PM
From: David E. Taylor	Respond to of 196986

ML: I was sure the original Nokia PR said "essential patents", so I went back and checked it. Then I saw Kayaker beat me to it. Odd (or maybe not odd) that no-one has brought up the exorbitant 29% licensing royalties apparently collected by Nokia et al on GSM handsets. I guess it's OK for Euro companies to rip off carriers and consumers to the tune of 29%, but not OK for the same Euro companies and consumers to shell out a miserly 4.5% to a US company. I'd like to think we're seeing the beginning of the end to this charade, but somehow I think it's a long way from being over. David T.