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

To: Rich Bloem who wrote (81203)	10/20/2008 12:47:38 PM
From: Eric L	5 Recommendations Respond to of 197798

Parsing Press Releases and Wishful Thinking ... Rich, << One of the thinks that I see of great value is that NOK will now be paying royalties on GSM phones. >> That is HIGHLY doubtful. This from Qualcomm's President and CSB (Chief Smoke Blower) ... "In connection with the settlement we and Nokia have entered into a new 15-year agreement that continues until 2022. Under this new agreement, Nokia has been granted a license under all of our patents for use in their mobile devices and infrastructure equipment. In exchange not only will Nokia pay us a very substantial upfront payment, but through the term of this agreement it will also pay us ongoing royalties on all of its mobile devices that it sells, whether those devices are based on CDMA standards including WCDMA CDMA2000 and TD-SCDMA or whether their mobile devices are based on OFDMA standards including WiMax and LTE." - Steve Altman, Q3 Earnings CC - Do you see any reference in the press releases you quoted to Nokia GSM device sales being royalty bearing to Qualcomm? Do you see any reference to Nokia GSM device sales being royalty bearing to Qualcomm in Altman's statement ... "... it will also pay us ongoing royalties on all of its mobile devices that it sells, whether those devices are based on CDMA standards including WCDMA CDMA2000 and TD-SCDMA or whether their mobile devices are based on OFDMA standards including WiMax and LTE." ... or public statements by any other Qualcomm executive. After three strikes, the final on the day of settlement, Qualcomm's failed bid to validate GSM submarine patents was ruled out on strikes by courts in 3 countries and it is highly unlikely that Nokia agreed to transfer some of their essential GSM patents to Qualcomm so that they could pay royalties on them to Qualcomm. Cheers, - Eric -

To: Rich Bloem who wrote (81203)	10/20/2008 12:50:08 PM
From: slacker711	Read Replies (1) \| Respond to of 197798

One of the thinks that I see of great value is that NOK will now be paying royalties on GSM phones. We don't know what that rate is and it could be argued that it is zero. But, according to the press releases, NOK's agreement now covers GSM. If Q was getting a non-zero rate for GSM (which I would bet heavily against), then that would mean that the rate for WCDMA would be lower. Everything Q is going to receive is bound by the 20-28 cent FY '09 guidance. Increase the GSM rate or the upfront payment and you decrease the WCDMA rate. Slacker