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To: ZChazz who wrote (15796)	9/30/1998 1:26:00 PM
From: tero kuittinen	Read Replies (1) \| Respond to of 152472

This may be Nokia propaganda, but it was widely reported in Europe that the "compromise" on W-CDMA was merely legerdemain that helped the Siemens/Alcatel/Motorola safe face. The core of W-CDMA still pretty much reflects the original design of Ericsson and Nokia. I don't think Nokia could have already a functioning prototype of a W-CDMA handset if they would have had to start from scratch after February. I think the majority of profits from W-CDMA will go to manufacturing companies, regardless of what the IPR decisions will be. I'm not aware of any company building a successful long term business plan on merely gathering licensing fees. The profit margins of GSM networks are above 40% and Nokia's handset margin is closing in on 20%. The margins on W-CDMA products should be considerably higher during the initiation of the system. In this regard, all the fuss about IPR's won't matter as much as the question of who is going to sell this stuff. Besides, I find Ericsson's contention that they have some patents needed in CDMA 2000 very interesting. What if the shoe is in the other foot before this mess is over? Tero