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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Raymond who wrote (11179)	6/5/1998 1:17:00 PM
From: Gregg Powers	Read Replies (1) \| Respond to of 152472

Raymond: Ericsson is promulgating W-CDMA as a 3-G European standard, and moved this proposed standard closer to DoCoMo's proposal to garner Asian support. The key point is simple: it is readily possible to create a migration path that would preserve carriers' investment in IS-95 and GSM. The Europeans are specifically trying to engineer a standard that will support GSM migration but exclude IS-95 based carriers. The rationale has far less to do with technical merit than it does with protecting the GSM installed base from incursion by IS-95 based equipment vendors. The debate is about politics, industrial policy and jobs. From my perspective it is an obscenity that the Europeans expect Qualcomm to hand over its IPR, on commercially agreeable terms, to facilitate a new standard (W-CDMA) that would potentially disenfranchise Qualcomm's existing customers. That's like you expecting me to rent you my automobile for $5 dollars a day because, in your judgment, you need the car more than my family and I do. Setting aside the damage done to Qualcomm's customers, QC's could potentially be better off ending the warfare and licensing its IPR. Under this scerario, QC's royalty opportunity would expand to encompass the entire globe, and QC would be able to compete head-on with ERICY et al with W-CDMA based equipment. At this point, however, Qualcomm management believes that such an outcome is inevitable, but can be achieved in a fashion more favorable to the company's existing IS95 customers. Gregg