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

To: thinkclear who wrote (67863)	8/17/2007 4:39:28 PM
From: rkral	Respond to of 197241

"I don't understand how Q could expect to renegotiate with NOK to pay more when NOK has the option to renew under the old terms. Any guesses how this could be accomplished?" At the time of that "we won't pay more" statement by CFO Simonson, Nokia was trying to float the notion that their royalty rate was less than 3%. Nokia was probably stating their effective "royalty-capped" rate, rather than the standard "un-capped" rate.

To: thinkclear who wrote (67863)	8/17/2007 4:50:35 PM
From: Q8tfreebe	Respond to of 197241

" I don't understand how Q could expect to renegotiate with NOK to pay more when NOK has the option to renew under the old terms. Any guesses how this could be accomplished?" Simple, if NOK doesn't pay come September, QCOM claims they breached the agreement and tells NOK the option is no longer valid and the price just went up.

To: thinkclear who wrote (67863)	8/17/2007 7:45:35 PM
From: Jim Mullens	Respond to of 197241

Thinkclear, Re: NOK license renegotiation / 2008 Option, and " I don't understand how Q could expect to renegotiate with NOK to pay more when NOK has the option to renew under the old terms. Any guesses how this could be accomplished?" NOK’s Simonson’s quote was from last March, after many months of negotiations and just before their license expired. It would appear improbable given the 2008 option clause, but perhaps several offers were on and off the table over the years and the two parties drew further apart as the stalemate intensified and the Q’s last position was a higher rate. A single mode GSM/ EDGE license was never a part of the old license, and adding that could effectively increase the rate. Perhaps even adding OFDMA was a part of the negotiations, adding to the rate. And, there were comments during the London Day Q&A wrt the terms of the extension that suggested it was complicated / not straight forward as one might expect given legal contract language / clauses. It’s all a big mystery, and Simonson’s “we won’t pay more” just adds more fuel to the fire.