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.

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

To: Raymond who wrote (49751)	1/22/2006 7:39:39 AM
From: JeffreyHF	Read Replies (1) \| Respond to of 196608

Closed wallet deal? Ericsson paid around $275 million real dollars for the privilege of taking that money bleeding infrastructure division off Qualcomm`s hands. Ericsson no longer makes handsets, so Sony-Ericsson is a separate deal, regardless of Ericsson`s settlement.And why do you think Ericsson is a party to the EU complaint, if they have such a sweetheart deal? There are many reasons why Qualcomm`s business and stock have been booming since the Ericsson settlement in March of 1999, but a bad deal from Ericsson is not one of them. I don`t trust any innuendo from Ericsson, but rather "follow the money".All that growing WCDMA licensing revenue is real, and is not based upon leak or misimpression.

To: Raymond who wrote (49751)	1/22/2006 10:04:12 AM
From: slacker711	Read Replies (1) \| Respond to of 196608

We really don't know what deals they have .Do we? No, but Qualcomm gives the ASP, unit and external royalty numbers every quarter so if you feel like going through the math you can at least get a ballpark royalty estimate. The numbers vary each quarter but they are consistently between 4% and 4.5%. That number is likely to rise to near 5% as the Motorola and South Korea patent sharing agreements expire. The fact that Qualcomm also nets out the price of their chips also takes down royalties by another .3 to .4 percentage points. FWIW, I have always speculated that Ericsson had a near zero royalty rate for CDMA infrastructure. That would make their "closed wallet" comment true while simultaneously making Qualcomm's handset royalty statements also true. Bottom line, Qualcomm collected $200 million in WCDMA royalties last quarter while Nokia made the statement (per Jorma) that they are a net payer of royalties. Slacker

To: Raymond who wrote (49751)	1/22/2006 2:59:10 PM
From: BDAZZ	Respond to of 196608

Whoa! Let's revisit the very good board analysis from that time of this supposed Ericsson "closed wallet" statement. Eric L pointed out: >>No Ericsson "spokesman" was quoted on that. In between direct quotes from Ericsson's CFO Karl-Henrik Sundstroem, and QUALCOMM COO Steve Altman, and paraphrased statements attributed to them, the Reuters journalist, Lucas van Grinsven made the statement ... "Ericsson has swapped its rich WCDMA patent portfolio with that of Qualcomm in a cross-licensing deal with virtually closed wallets, but smaller players in the WCDMA market without their own WCDMA technology will be forced to pay to use it." I added the press release: >>ERICSSON and QUALCOMM Reach Global CDMA Resolution NEW YORK -- March 25, 1999 -- ERICSSON (Nasdaq: ERICY) and QUALCOMM (Nasdaq: QCOM) today announced that they have entered into a series of definitive agreements that resolve all disputes globally between the companies relating to Code Division Multiple Access (CDMA) technology. ... The cross licenses are royalty bearing for CDMA subscriber units sold by either party<< And Jeffrey added this analysis making a significant point that Ericsson and Sony Ericsson are different entities. >>The 3/25/99 press release states that the agreement is "royalty bearing for CDMA subscriber units sold by either party". Since Qualcomm sold the handset division, that is now a one way street. The only question applies to CDMA infrastructure. It is conceivable, though not certain, that in consideration of taking the money losing infrastructure division off of Qualcomm`s hands, for the sum of what I correctly or incorrectly recall to be $275 mil, Ericsson pays no infrastructure royalties. But there is no question that Sony Ericsson pays WCDMA royalties, and CDMA2000 Japan market royalties.<<