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 : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (24600)	10/26/2002 4:30:51 PM
From: Maurice Winn	Respond to of 74559

Thanks for the links Jay. QUALCOMM would still collect royalties [or be due them] for production of that standard because it uses some of QUALCOMM's patented technology. QUALCOMM wisely cut royalties for sales inside China to a derisory 2%, barely enough to bother with a less efficient standard requiring development, which would have to be done without the backing of the huge support given to the major CDMA standards by both developers and subscribers. The GSM Guild has shown the advantage of having huge economies of scale, managing to maintain a dominant position with a weak technology because the other technology surrounding GSM has gone ahead in leaps and bounds, to the detriment of CDMA. Despite the huge advantage of CDMA over GSM, it's taken a decade to gain serious traction. The trivial differences of the Chinese standard, with no advantage, means it has got a very hard row to hoe. Exports from China will require 7% royalty. Exports can be controlled by the USA 7th Fleet so royalties can be collected. It's local production which is hard to control. Having a very low royalty rate inside China also encourages rapid and early development in a low pay zone, enabling poor people to quickly get with the programme. That gives a turbo boost to CDMA internationally, because Chinese will work to produce CDMA at really low cost which will then be exported, with 7% royalty, and still be cheaper and better than GSM's meagre offerings. China is also using the 'local stuff' as negotiating leverage to try to get chip prices down and also royalties. QUALCOMM is doing too well and going too fast for that strategy to have much impact. They perhaps hope to use their local production to leverage into international markets, which is a time-honored tradition. Make some local tweaks so foreigners can't enter the market, then go like mad and in 10 years, take over the export markets too. It didn't work for Japan's PHS, or D'oh!CoMo's W-CDMA. It won't work for China's silly CDMA version, even though they are doing it in special frequency. QUALCOMM's radioOne-driven multimode, multiband technology will render that impotent. China needs to forget the narrow nationalism and feel the Peace, Light, Harmony, Happiness, Synergy and Prosperity of the Global Embrace in Phragmented Photon Cyberspace. Mqurice

To: TobagoJack who wrote (24600)	10/26/2002 4:52:41 PM
From: Joe S Pack	Read Replies (1) \| Respond to of 74559

WOT and War on Axis-of-Evil will cost lot more indirectly than what J6P is informed of. Bush administration dangles $10 billion offer to Russia boston.com Then there is this $10billion blackmailing by Sharon on top of regular annual handout. news.bbc.co.uk