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

To: bananawind who wrote (14416)	9/1/1998 3:26:00 PM
From: Cigar	Read Replies (2) \| Respond to of 152472

Can someone explain the significance of Ericcy's announcement today re: signing a contract in Mexico? I thought Mexico had gone CDMA. What am I missing?

To: bananawind who wrote (14416)	9/1/1998 4:22:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

Wow, what a lot of fun that was! Who was the unlucky one who managed to sell at $41 today, when the stock hit $48.40 towards the end and closed on a high. These Big Dippers sure are fun. Come on, own up the $41 sellers. Okay Ramsey, did you do it or are you still Mr Chicken with Little stock and lots of cash? Now we see Nilsson wilting in the face of increasing opportunity cost in cdmaOne and cdma2000. Qualcomm should win this opportunity cost race. It is a little like a GM strike. It is bad for both parties, but the pressure to strike an agreement is higher on one than another. Qualcomm will just go on increasing their cdmaOne position every day L M Ericsson delays, albeit at a slower rate than if L M Ericsson was also pouring investment into cdma2000 and abandoning GSM. Meanwhile, L M Ericsson is losing ground every day they fail to capitulate. L M Ericsson is losing ground a lot faster than Qualcomm is failing to gain it! L M Ericsson must capitulate and do it quickly or risk the huge position they have established. Qualcomm can wait longer than Ericsson. The IP seems secure. The political base of Qualcomm with Al Gore and the USA political systems seems VERY secure. The USA political, military and judicial systems seem VERY secure. Europe cannot over-ride those positions. It might be better for Qualcomm to simply ignore L M Ericsson as a prospective licencee, demand a deregulated European telecommunications market as part of free trade agreements which have been promulgated and climb into competition in Sweden, Finland, and the rest of Europe. There is moaning that Qualcomm wants to put a toll gate on the information superhighway. You bet I do! Qualcomm is building it and produced the necessary technology so of course we want to be paid what the market will bear. We don't want to suffocate it with huge fees, but we want our optimized rewards. Normally, companies spend maybe 20% of their budgets annually to come up with technologies such as cdmaOne. None of them can do that any time soon, unless they spend their R&D budget on buying Qualcomm. So if they can buy cdmaOne and cdma2000 technology for only 10% of their related revenue, that seems like a real deal. Especially when the alternative is to move into reindeer burgers or the like. Raise the stakes! Let's squeeze Nilsson, L M Ericsson and Nokia until they squeak. They weren't running any Sunday School picnic when cdmaOne was just a gleam in the eye and a struggling novice. As Tero says, Nokia has got a LOT of money pouring in. They will no doubt be very happy to pay a goodly fee for cdma2000 or enjoy only a brief thrill of GSM profit like the OPEC gang did for a few years. Nokia does have cdmaOne, so L M Ericsson will be looking pretty jaundiced in 5 years without being in the cdma fold. Mqurice