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

To: matherandlowell who wrote (61206)	3/20/2007 5:44:52 PM
From: Maurice Winn	Respond to of 197231

M&L, good points. Also, since W-CDMA operates worse than CDMA2000 [much slower for a start, then there is/was battery life, lack of synchronisation, dud chip rate, limits roaming, and other drawbacks], the W-CDMA royalty should be LESS than CDMA2000. Look at the head to head competition in Japan and see Au beat Foma. The idea of changing to W-CDMA from CDMA is crazy. Telstra is doing it, inflicting perpetual higher royalties on Australians. Royalties, according to the GSM Guild, have stymied CDMA development. Well, 12% is a lot more than 5%. And GSM at 16% is a lot more than 12%. Even 12% isn't very much in the total cost of the life of a handset, so I don't really see it as a major problem for Telstra, but as competition continues and prices come down to sensible levels, they might find 12% is too much. There won't be any CDMA2000 in Oz, so Telstra will compete mainly with other W-CDMA networks, but there is Globalstar competition, wifi competition, OFDM competition [one day]. Mqurice

To: matherandlowell who wrote (61206)	3/23/2007 5:07:33 PM
From: lml	Read Replies (2) \| Respond to of 197231

"many other companies charge half as much." Many companies charge half as much for what? The value of a patent relates to what the patent can do, not just that it is a patent. What value does the patent create for the user? The value a patent has for a user will determine what the user is willing to pay the patent owner. The issue raised by your comments goes to the heart of NOK's litigation strategy on royalty rates. It's been pumping the fact that Q's CDMA-based IP today is a much smaller percentage of the total IP stack built into WCDMA phones, due to all the IP it's been piling on as WCDMA technology has become more critical to their top line. So what? Regardless of how much IP NOK & its GSM cabal pile onto the CDMA platform, it's still a CDMA platform, so how has the "value" of Q's IP changed over the years? It hasn't. If anything it's more valuable, not less. There's a lot one can do with smoke & mirrors. Fortunately, when it comes to presenting these arguments before a tribunal, jurists will see through all the BS. JMO.