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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 (28681)	11/9/2002 8:55:27 AM
From: foundation	Respond to of 197272

(Korean) Move to Standardize Binary CDMA By Kim Jong-yun Saturday, November 09, 2002 The global wireless home network-related product market is expected to grow at a fast speed. Amid this, in Korea, there emerges a move to form an industrial-educational cooperation and develop a standard for wireless connection system of digital home appliance, taking advantage of Binary CDMA technology, the country's source technology. 'Binary CDMA Home Network Forum' held the inaugural meeting on Nov. 8 and launched its activities for the global standardization of the system. Ministry of Commerce, Industry and Energy (MCIE) and 30-plus institutions participated in the forum, including Korea Electronics Technology Institute (KETI), Korean Standards Association (KSA), CASUH, Sungkyunkwan Univ., and Yonsei University. The forum is going to develop an actual domestic standard by organizing a joint cooperation structure, through which it will seek boosting the competitiveness of the home network industry and expanding markets. In addition, it plans to push forward a global standardization after establishing a standard in Northeast Asia, particularly among Korea, China, and Japan. The wireless home networking market is in its initial stage, and infrared or wireless LAN is predominant in the market. But Binary CDMA is forecasted to quickly replace them after 2004. Moreover, wireless-related products accounted for 30% of the $100 million global home network market but are expected to constitute up to 60% of the $500 million market in 2004. Such a bright outlook for the market is partly encouraging a move to make Binary CDMA a global standard. MCIE said that in particular, Korea holds the source patent for Binary CDMA, so that the country can secure the competitiveness of domestic products and also expect an enormous amount of royalties in the future. "The wireless home network industry is expected to emerge as a key information infrastructure," said one source of the ministry. "Accordingly, we plan to activate technical exchanges and set a technical standard through the forum. And then, we will let the standard take root as a global one. <Terminology Explanation> Binary CDMA = Korea’s source technology sending multi-channel CDMA signals in binary wave form. It is a key CDMA technology that enables design and production at a reasonable cost because it outperforms Qualcomm CDMA and has a simple structure. The technology is expected to develop into the fourth generation telecommunication system. In particular, CDMA home network technology uses merits of both CDMA and TDMA, sends output signals of multi-code CDMA in fixed amplitude, and supports a high-speed data transmission by using low-priced parts. In addition, its simultaneous multi-connection technology is multipoint-to-multipoint and enables various forms of networking, compared with existing point-to-multipoint system. ad.etimesi.com

To: foundation who wrote (28681)	11/9/2002 9:48:32 AM
From: Raymond	Read Replies (1) \| Respond to of 197272

Most contracts are written so the the major part of the money for the equipment is received at delivery.Smaller parts can be received at acceptance of all functions and maybe some when you take the equipment in service.The Base stations for WCDMA doesn't need to be dualmode.Mobiles and switches need to be dualmode.I am pretty sure that none of the infrastructure companies are sending out equipment that they have to change out later at this stage.They might do that when the deliveries are in the tenths not in thousands.If they do that they are stupid.Nothing is more expensive. "Q has noted that its royalties on infrastructure are minimal" This is what I have always have argued.I remember the reactions from people on this thread when I said that three years ago.Happy to here that QCOM agrees that they will not collect much money on this.

To: foundation who wrote (28681)	11/9/2002 10:16:17 AM
From: Eric L	Respond to of 197272

Ben, << revenues cannot be recognized by vendors until they can technically prove functionality, which has not occurred >> That is true in the case of Nokia who has taken that conservative approach to infra recognition. It does not necessarily apply to others, and Ericsson has been recognizing revenue on the project basis that is outlined in their 20-F. - Eric -

To: foundation who wrote (28681)	11/9/2002 4:53:20 PM
From: slacker711	Respond to of 197272

First, Q has noted that its royalties on infrastructure are minimal I think that this is only true when you look at the comparative amounts from infrastructure to subscriber equipment. The absolute amount is still quite large. The following is a quote from a presentation by Steve Altman at last years November analyst meeting. snip...... Roughly 85% of Third Party Royalties Come From Subscriber Unit Sales With the Remaining Coming From Infrastructure I remember going back through Qualcomm's earnings releases and coming up with an estimate of $300 million for Q's total infrastructure royalties. The 10,000 basestations that Ericsson has shipped is a pretty significant amount. Lucent is the largest IS-95A infrastructure supplier and they have only shipped 60,000 basestations over the entire life of IS-95 (probably going back at least 7 years). I see two possible scenarios. - W-CDMA infrastructure royalties are going to accelerate significantly over the next two to three quarters (as Ericsson and Nokia start sending in payments). or.... - While Qualcomm's often heard comment that they receive the same royalty regardless of standard is technically true, it may break down when you look at the overall market. The bulk of the W-CDMA infrastructure revenue is going to Ericsson and Nokia. Perhaps part of Ericsson's deal when they took Q's infrastructure unit was a royalty-free IS-95A deal? Ericsson could then also have a royaty-free W-CDMA infrastructure license which would not violate Q's statement. Since Nokia has never had an IS-95 infrastructure unit the statement doesnt really mean much for them. So....Qualcomm might end up with a smaller royalty percentage of the W-CDMA infrastructure market than for the IS-95A market since those collecting the revenue have changed. I am really hoping that infrastructure royalties are going to start streaming in next year but I sort of doubt it. Qualcomm has consistently downplayed the impact of W-CDMA infrastructure royalties. Slacker