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

To: Jon Koplik who wrote (13905)	8/18/1998 1:46:00 PM
From: 2brasil	Read Replies (1) \| Respond to of 152472

QUALCOMM do Brasil Establishes New Factory to Manufacture QUALCOMM CDMA Digital Phones in Sao Paulo Factory to Serve One of the Largest Wireless Markets in the World SAO PAULO, Brazil, Aug. 18 /PRNewswire/ -- QUALCOMM do Brasil, S. A., a subsidiary of QUALCOMM Incorporated (Nasdaq: QCOM - news), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a new QUALCOMM phone manufacturing facility in Sao Paulo, Brazil, with initial manufacturing capacity of approximately 300,000 phones per year. QUALCOMM will continue to take the necessary steps to meet the needs of the Brazilian market, increasing manufacturing lines and capacity as market conditions warrant. QUALCOMM do Brasil will commence production of QUALCOMM's advanced CDMA digital dual-mode Q(TM) phone in September with shipments of the new phones expected to begin in October of this year. ''Our local manufacturing operation represents our strong commitment to Brazilian carriers and consumers to support their tremendous demand for high- quality wireless phones,'' said Marco Aurelio Rodrigues, president of QUALCOMM do Brasil. ''Serving one of the largest markets of wireless products in the world, QUALCOMM do Brasil looks forward to accelerating its production ramp to meet the increasing requirements of carriers in Brazil who seek to offer the exceptional voice quality and performance of QUALCOMM's CDMA digital technology and products to their customers.'' Valerijonas Seivalos Jr., vice president, manufacturing operations of QUALCOMM do Brasil said, ''QUALCOMM do Brasil is actively hiring a well- trained, highly motivated team of seasoned executives and a production staff with high-quality, high-volume manufacturing experience to ensure the greatest levels of manufacturing quality and output.'' QUALCOMM do Brasil, established in 1995, was formed to meet the growing wireless demands of the Brazilian market. QUALCOMM do Brasil, working with Conexao, a wholly-owned subsidiary of Flextronics International Ltd. [Nasdaq:FLEXF - news], is expected to rapidly increase manufacturing capacity to meet the tremendous demand in the Brazilian marketplace. The factory will manufacture QUALCOMM's Q phone series and the QCP phone series of CDMA digital mobile phones. By associating with Flextronics to manufacture its phones in a new ISO 9002 certified factory, QUALCOMM do Brasil has demonstrated a significant step towards meeting the needs of this important market. QUALCOMM's CDMA phones deliver crystal clear calls, with extended talk and standby times, enhanced privacy and support a variety of enhanced features such as incoming caller ID, short messaging service and voice mail alert. Based in Sao Paulo, Brazil, QUALCOMM do Brasil is a subsidiary of QUALCOMM Incorporated. QUALCOMM do Brasil oversees manufacturing, sales and marketing of QUALCOMM CDMA digital phones and marketing and sales of CDMA infrastructure for CDMA digital carriers in Brazil and greater Latin America. QUALCOMM phones are marketed and sold in Brazil, the United States and other countries throughout the world. Headquartered in San Diego, QUALCOMM develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS(R) system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar(TM) low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro(R) electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on QUALCOMM products and technologies, please visit the Company's web site at <http://www.qualcomm.com>. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1997 and most recent Form 10-Q. QUALCOMM, QUALCOMM do Brasil, OmniTRACS and Eudora Pro are registered trademarks and the Q logo is a trademark of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporate

To: Jon Koplik who wrote (13905)	8/18/1998 2:05:00 PM
From: JGoren	Read Replies (1) \| Respond to of 152472

ETRI suit. I believe it was Gregg who pointed out--and you can even read the articles in Forbes or some other mag linked on the thread in the last few days--where it is clear that "cellular" and "PCS" are clearly two different things in the industry and even to the public. Sounds to me like the ETRI suit is doomed if the contract says "cellular", and Qcom may even get its attorney fees paid. Even I know there is a difference! Regarding the announcement of Ericy's new modem for data services, fax, etc. As I understand it, the primary difference between cdma and GSM is spread spectrum at narrower band (I hope I got that right), which is superior for data transmissions. Then how can a GSM standard really effectively handle data even with a fancy modem. Wouldn't it be inefficient, more costly and merely a short to mid-term holding action for GSM--and depend on plenty of extra or unused capacity from the carrier? Response from any technical folks would be appreciated as to how that thing would work and how effective it might be.

To: Jon Koplik who wrote (13905)	8/18/1998 8:34:00 PM
From: Maurice Winn	Respond to of 152472

Jan-June 1996 Q.com received $7.59m royalties from the Korean 4. July96-July97 Q.com received $77.80m, paying only $8.4m 10.8% to ETRI, the rest being PCS sales. So half was PCS! Until July 97, Q.com was paid $85.4m in royalties from the Korean 4, which included royalties from overseas sales. While I can't discriminate between infrastructure royalties and handset royalties, we do know there were about 1m cdma handsets by the end of 1996 and 3m by July 97 worldwide, of which Qualcomm Personal Electronics made about 60%. So for something like 2m handsets, Q.com got about $80m, or $40 per handset - not forgetting that this includes infrastructure. Maybe $20 per handset and $20 per infrastructure. Which must be about 7.314159% royalties on handset sales. I realize this is rough as, but perhaps it will prompt somebody who has the facts at their fingertips to do some successive approximation. To be neutral, as Gregg suggests, on whether Samsung or Qualcomm makes a phone, the royalty needs to be about 7%. Royalty pricing should aim at neutrality, thus balancing supply and demand, rate of growth, royalty versus own production profits and all that stuff. Any improvements appreciated. In any event, royalties are going to be a LOT of money! GO NOKIA! Mqurice Drew, re: "It seems incredible to me that ERICY would go this far out on the limb without having something in their back pocket, but stranger things have happened". For example, L M Ericsson never bothered with a cdmaOne licence. Japan bombed Pearl Harbor, Germany invaded Poland and Czechoslovakia, Nixon arranged a burglary and Bill Clinton demonstrated the finer art of politics and public office to a young female intern, who demonstrated how trusting friends like Linda can Tripp you up. Lastly, on patents, I heard from a usually reliable source re Qualcomm's patents needed for SETI's wideband CDMA: "Anglo patent law is set up to prevent this sort of blocking patent in the name of fostering competition. I am not making a judgement one way or another, and certainly there are occasions when blocking patents are given, but they are normally an oversight of the system. Thus Qualcomm almost certainly could not effectively lay claim to, for instance, power control, which is an absolute necessity for multiple transmitter CDMA. They can only lay claim to individual methods of implementing power control one-by-one. It's a good bet they have most of the best ones, but, ... . I wouldn't count on Qualcomm having any absolute block, but they probably have several that will be too costly (in time and money) to work around." Also, JGoren, "cellular" seems too arbitrary to hang a case on in Korea - better definition is needed - frequency etc..