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

To: 100cfm who wrote (50692)	3/1/2006 11:26:27 AM
From: 100cfm	Read Replies (1) \| Respond to of 197032

"Estimates for cumulative royalties for WCDMA are between 25% to 30% and the mobile industry could spend US$80-100 billion on WCDMA-IP-royalty payments up to 2017," says Patterson. So why is Q's 5% such a big problem??? Q is only 1/5th to 1/6th the problem.

To: 100cfm who wrote (50692)	3/1/2006 12:13:09 PM
From: slacker711	Respond to of 197032

What would be the earliest this type of action would come into effect. Meaning what's the earliest they can cut Q out. I fully beleive that if a cap is what they want and they are cutting out CDMA from layer1, then I don't think they will be stupid enough to let HSDPA/HUSPA issues unaddressed so that Q could hold them hostage on those patents. This is not a good thing. It definitely isnt a good thing....but it isnt entirely unexpected. I just dont think that it is realistic to expect that Qualcomm will be able to get a 5% royalty on every cellular handset ever made. It isnt going to be good enough to just have mobile OFDM patents. They are going to need mobile OFDM patents that are impossible to work around or if there is a work around, it would have to severely cripple the performance. It is possible that is the case, but it isnt going to be nearly as clear cut as with CDMA. As for the timing of LTE....I think Docomo refers to it as Super3G. They have it listed as sometime after 2010 in this September '05 presentation. nttdocomo.co.jp Regardless of the exact timing of the rollout, it will likely follow the same path as WCDMA. A long debugging process followed by infrastructure rollouts in cities with multimode handsets required to get coverage. Docomo first rolled out WCDMA in '01 and Hutchison in '03. We are still years away from operators outside of Japan selling WCDMA only handsets. As for the royalties associated with HSDPA/HSUPA....I think those are pretty much set in stone. They would have to completely rework the standard to get Qualcomm out (and I doubt they could do it even then). Slacker