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

To: Maurice Winn who wrote (62549)	4/12/2007 5:00:10 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196971

Well, Maurice, as others have also noted, we may never see the terms for a Nokia-Qualcomm settlement. Though I suggested a quantity discount, that could also take the form of LESS reimbursement for Qualcomm's extensive legal costs stemming from Nokia's intransigence. I don't think it's good business to charge high royalty rates. Right now there are other technologies that some service providers would LOVE to employ, if only to avoid the existing royalties paid to Qualcomm and others. WiMAX, for example, has so many problems that it should never get much attention. But because there are other interests (such as the attempt by Intel to get a piece of the wireless chip action), it is essential that there be no impediments to continued and rapid deployment of any CDMA type system. When do excessively high royalty rates amount to economic rent? I think that point is somewhere above the 5 percent rate that Qualcomm believes is reasonable. I appreciate the fact that the royalty rate, high or low, doesn't affect demand that much. But it does inhibit service providers or equipment sellers from going all out for CDMA as the system of choice for most communication needs. Art