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

To: henry8 who wrote (85737)	7/27/2009 2:02:48 PM
From: ironair	2 Recommendations Read Replies (1) \| Respond to of 196989

Henry ... so as carriers migrate to 3G, the equipment providers will force them to 3G GSM ? Oh, well funny enough 3G GSM, as it is based in CDMA, pays QCOM the same rate at 3G CDMA. In recent years, the principal problem with migration to 3G was that European regulators orchestrated the various European markets to protect their native incumbant equipment providers. This purposeful meddling along with the head start that GSM had, provided non-European decision-makers with a bias towards the more broadly deployed GSM. The effective royalty rate charged by the GSM cabal was multiples of QCOM's royalty rate. But this was not a consideration of the carriers, but instead was a shrewd way for the incumbant equipment producers to surpress competition. These market manipulators were aided and abetted by the European regulators who mandated use of the inferior GSM technology. European consumers (not to mention Qualcomm shareholders) have been harmed by this ... and now Europe "reaps the rewards" of its myopic opposition to freedom and innovation; its state-supported businesses fail to innovate, and now they stagnate. Who here thinks that Europe will be the place that spawns the next innovator in mobile communications ?

To: henry8 who wrote (85737)	7/27/2009 2:07:41 PM
From: JeffreyHF	1 Recommendation Read Replies (2) \| Respond to of 196989

Henry, you're ten years too late for this rap. It's over. Single mode GSM is declining, while all flavors of 3G CDMA are growing. Multi-mode devices and upgraded infrastructure are royalty bearing to Qualcomm. And should you decide to read about the straw men you're so intent on referencing, don't forget to look to China. Huawei and ZTE are low balling everybody, squeezing margins, and making infrastructure sales tough for all the incumbents. Qualcomm makes lower royalties from infrastructure, the vast majority of royalties coming from subscriber equipment.Check out the list of licensees. It's over.

To: henry8 who wrote (85737)	7/27/2009 5:14:32 PM
From: Eric L	Respond to of 196989

Whistling Dixie ... Henry the 8th U'am (or were), << There is nothing wrong with the CDMA infrastructure business. >> Say what? Let's get real, instead of ridiculous, pull thy head out of the sand, and let's talk fact instead of attempting to perpetrate fiction on this board or any other. CDMA currently represents ~14% of the infra market (Del'oro/Gartner/Other), considerably trailing 2G/2.5G GSM (GSM, GSM/GPRS, GSM/EGPRS) which was surpassed for the 1st time in 2008 by 3GPP 3GSM (WCDMA and its HSPA extensions) last year, and it's declining even faster than 2G/2.5G GSM. Qualcomm and 3GPP2's CDMA2000 is the dominant technology in 3 countries -- the USA, Canada, and South Korea, and 3GPP's 3GSM is rapidly overtaking CDMA2000 in both South Korea and Canada. CDMA2000 has no evolution path into 4G. Qualcomm is a principle contributor (one of several along with Ericsson, Nokia, Samsung, Huawei et al) to 3GPP LTE/SAE. On the infra side of mobile wireless Nortel obviously is dead meat. Moto's a non-player, and without switching gear never really was. Paris based (formerly AT&T) Lucent (noe Alcatel-Lucent) with its CDMA2000 'crown jewels' will get creamed and decimated by Huawei very shortly. It's a 3 horse race going forward. Its the CDMA2000 and (those stick with TD-SCDMA, i.e. China Mobile) players (and NTT DoComo) that are accelerating the transition of CDMA2000 to LTE/SAE and for good reason. With no migration path (which even 2G/2.5G GSM has) they need to move forward quickly. Ericsson obtained an extremely nice win here and kicked NSN's butt. It gives Qualcomm an opportunity to reinvigorate an Ericsson relationship, and if I represented Qualcomm, and had a choice to team (again) with infra leader Ericsson instead of NSN, on the infra side of the mobile wireless business (what little's s left of CDMA2000 and more importantly LTE going forward), I'd choose Ericsson hands down over NSN (and yes, I hold NOK as well as QCOM, and do not hold ERIC ). Ericsson wins big in this deal. So does Qualcomm who has intelligently modified its strategic business planning to adapt to reality under its current leadership, and is itself becoming an industry leader -- already is in not only positive IPR royalty flow and IC silicon revenue, . << If the number of CDMA subscribers begins to decrease, it's all over for Paul Jacobs and company at Qualcomm. >> You are Whistling Dixie. - Eric (not ERIC) -