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

To: Jim Mullens who wrote (32175)	2/10/2003 12:26:40 PM
From: slacker711	Read Replies (1) \| Respond to of 197809

7. I read an article sometime back discussing the possibility of BREW revenue per phone exceeding royalty revenue per phone. It used KT Freetell as the basis citing their BREW revenue per phone averaging around $6/month, Qualcomm’s share at $.60/ month, times 24 months (avg phone life), equaling $14.40 per the life of the phone. Granted, not everyone buying a Qualcomm phone will be a BREW user, but is it possible that BREW could generate significant recurring revenues in the future? Unfortunately, I think that this estimate significantly overestimates the revenue that Qualcomm will likely see from BREW. The $6 in data ARPU that KTF is seeing includes both the application AND the packet fees. I am pretty sure that Qualcomm's portion of the data revenue is limited to application fees. During their most recent CC, KTF commented that 15% of wireless data revenue (51 billion Won) was for wireless content. ktf.com This would work out to $2.17 per KTF handset. This probably still overestimates the contribution since the lifetime of a BREW handset user is likely to be less than the overall average of 24 months. If KTF's experience is the norm, I think BREW would need to be an overwhelming success (on the scale of 50 million users) before we would see much contribution to earnings. Slacker