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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Dexter Lives On who wrote (131674)11/3/2003 8:52:10 PM
From: Art Bechhoefer  Read Replies (2) | Respond to of 152472
 
Rob, one of your problems is that your comments are colored. In this case, of course China will save on royalty fees because anything using TD-SCDMA will pay royalties to QUALCOMM at the lower domestic rate negotiated with QUALCOMM (around 2.5 percent instead of the usual approx. 5 percent).

TD-SCDMA would be a domestic system, useful only in China, since it is somewhat incompatible with CDMA2000 or WCDMA. China would have an advantage selling domestically made handsets, since the royalty paid to QUALCOMM would be less than the rates that outside manufacturers would have to pay (roughly 5 percent). Chinese manufacturers would realize a "large savings in royalty fees."

If you meant to suggest that China would pay NO royalty fees whatsoever, well, you comments are colored.

Art