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

To: Keith Feral who wrote (23246)	2/23/1999 10:04:00 AM
From: straight life	Read Replies (2) \| Respond to of 152472

Qualcomm and Tiller Begin $500 Mln Project in Russian Regions Moscow, Feb. 23 (Bloomberg) -- Qualcomm Inc., a producer of wireless phone equipment, and the U.K.'s Tiller Group started a $500 million project to install cellular phone systems for Russia's regional phone companies, the companies' Russian spokesman said. Metrosvyaz, a joint venture between Qualcomm subsidiary Leap Wireless and Tiller Group, will provide and install equipment allowing Russia's regional phone companies to provide cellular services via CDMA technology Qualcomm produces. The project aims to improve the quality of phone connections in the country's regions, which stretch across eleven time zones. ''The aim is to provide as many people with phone access as cheaply as possible,'' said Sergei Svirida, technical assistance director at Metrosvyaz in Moscow. ''The demand for phone access is much higher than we can satisfy at this point.'' Russia's 89 regions, stretching from Kaliningrad in the west to Magadan in the far east, are plagued with low-quality and unreliable phone services. Regional phone companies need foreign partners to help modernize outdated equipment as they lost access to international financing after the government's debt default in August. Only 19 people out of every 100 in Russia have a phone, versus about 60 people per 100 in the U.S. Metrosvyaz is looking to lure clients to use its narrow-band CDMA, code division multiple access, technology which San Diego, California-based Qualcomm says it developed. Qualcomm is currently in court with Sweden's Ericsson AB to determine who developed the technology. Mobile License Metrosvyaz also hopes to win a license to provide mobile phone services, Svirida said, as that would make the company a more attractive partner for regional phone companies. So far, the government has yet to give out a license for the CDMA standard. Analysts said Qualcomm is working hard to install its technology in the underdeveloped Russian market. ''For a company that doesn't have an obvious reason to be in Russia they have been extremely active and have basically made something out of nothing,'' said Alexander Kabanovsky, a telecommunications analyst at Brunswick Warburg in Moscow. The company is ''now a player to really deal with as a supplier on the Russian market.'' Installing wireless phone networks is quicker but still more expensive than laying cable, and the project, despite its scope, may not be able to hook up the main portion of users because of price, Kabanovsky said. ''The question ultimately is price and at this point in time I don't think they can price it as a mass market offering,'' he said. ''So you get the service going out to the dacha residents.'' So far, Metrosvyaz is in talks with 11 regional telephone companies to set up its wireless service. The project's sheer size may mean it will face difficulties in the regions as local power structures get involved, said Kabanovsky. ''Traditionally large scale projects haven't been very successful in Russia -- they are huge targets for the various interests and people start milking them for all they have,'' he said. Smaller regional projects have been more successful, he said. ..................... QCOM subsidiary????? No good...

To: Keith Feral who wrote (23246)	2/23/1999 10:13:00 AM
From: JGoren	Read Replies (7) \| Respond to of 152472

Trial Report. Yesterday, the judge gave 30 minutes for opening, 12-1/2 hours per side. Therefore, Markman hearing should be over Thursday, possibly with closing arguments Friday. Qualcomm made some objections to documents; judge took them under advisement. The courtroom is packed. Ericy on the left; the last two rows of the courtroom are nothing but Ericy document boxes. Ericy has more folks there than Qualcomm. I sat next to a young patent lawyer from MOT, who came in from Illinois to observe. The special master sits to the judge's right; he is the only one who asked questions. I recognized Ericy's lawyers from a prominent Dallas firm. I didn't recognize any of Qualcomm's lawyers. One of Ericy's experts was on the stand all morning, Dr. Cox. Boringly the questioning was primarily the meaning of each term, phrase in two patent applications. The focus was on a 1988 patent, reissue 36,017*** and a 1992 patent 5,088,108 (might have been 5,008,108, my notes aren't good on that). Essentially, Ericy is arguing that these patents cover any cell phone system and therefore cover cdma. At various points the Qualcomm spectator side would smile as they apparently think they saw a hole in the guy's testimony. IT WAS REALLY BORING. I left at the noon break, because I could be more than half way back to my office before they reconvened at 1:30. The most interesting thing. From my notes and these are almost direct quotes: Question, what was the state of cdma in 1988 when this patent was applied for? Answer, "There was no active developmental effort of a cdma system. ... The GSM trials were not successful and so [cdma] was abandoned.... The U.S. began cdma, originally proposed by Qualcomm in 1989-90 ...." I am very busy this week and doubt if I will get back, but if I do it would be Thursday.

To: Keith Feral who wrote (23246)	2/23/1999 12:26:00 PM
From: John Dough	Read Replies (1) \| Respond to of 152472

<QCOM to begin $500 million buildout in Russia> If the Q is building out in Russia again, that must mean that Russia came through with the $28 Million that they owed Q last quarter. According to the conference call, the entire amount was excluded from last quarter's revenues, but I imagine that the cost to produce and install the equipment was counted. So, that should add an extra $28 Million to the bottom line this quarter. If I'm off base here, someone please fill me in. Mark