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

To: straight life who wrote (23982)	3/10/1999 9:57:00 AM
From: Ruffian	Respond to of 152472

Q Making More Moves> Bell Canada, Qualcomm Hope to Compete With Telefonica in Brazil Sao Paulo, March 10 (Bloomberg) -- A group comprising Bell Canada International, Qualcomm Inc. and other investors plan to bid for a license to provide phone service in Sao Paulo, Brazil's largest and wealthiest state, Folha de S. Paulo reported. Rafael Steinhauser, executive vice president of the Bell Canada International-led investment group, said the investors are ready to bid for licenses to compete with Telesp Participacoes SA in Sao Paulo -- controlled by Spain's Telefonica SA -- and Tele Centro Sul Participacoes SA, a phone company serving the south of Brazil. The group already plans to install 1.6 million phone connections in the Rio de Janeiro service area using wireless local loop technology. The Bell Canada group has a license to provide fixed-line telephone service in a swathe of Brazilian territory spanning from Rio de Janeiro to the Amazon. (Folha 3/10 2/4) NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.

To: straight life who wrote (23982)	3/10/1999 9:57:00 AM
From: marginmike	Respond to of 152472

I think indeed that is the case. The strength of ericy behind the Q in europe and China is making me salivate!

To: straight life who wrote (23982)	3/10/1999 9:45:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 152472

If there's a comprehensive agreement with ericy that engages both parties in a Q/NT-like relationship that would be the best of all possible worlds Everyone seems to think that any deal where Qualcomm gets an agreement like they have with Nortel is a good one. Not so (IMO). Imagine that Qualcomm 'settles' for having a type of wideband CDMA standard which is not backward compatible with CDMAOne (e.g. one of the three pieces of the new standard uses 4.096 Mbps chip), but that they also sign a deal with Ericsson that they get 25% of all of Ericsson's CDMAOne/CDMA-2000 business. Is this a good thing for Qualcomm? I think not. I'd think Qualcomm would be better served by letting Ericsson twist in the wind. With a deal like this and with Europe's propensity for setting standards I think it likely that Europe (with all of their 'trials' already running) would force the incompatible version of W-CDMA and other countries like China seem to be waiting to see what Europe does. So what if Ericsson gives 25% of its IS-95 contracts to Qualcomm. 25% of $0 is $0. The only benefit from this would be increased royalties, but at the expense of eventually selling a niche product. Or alternatively, imagine a somewhat better deal with Qualcomm. Ericsson agrees to give 25% of all its CDMA (W-CDMA or CDMAOne or ... ) to Qualcomm, but CDMAOne is not upgradeable to the version of CDMA that Europe forces. Then Qualcomm and other CDMAOne vendors (including now Ericsson) lose a huge opportunity to sell equipment into Europe with the promise to upgrade it to the standard when it is ironed out. At least Qualcomm doesn't 'lose' anything except opportunity in this solution, but neither is it particularly rewarding for the innovator. They become just another CDMA provider, since by the time W-CDMA comes out I suspect Ericsson, Nokia et all will have largely caught up with Qualcomm. The point here isn't to preach doom and gloom, but to make it clear that the devil is in the details. Not all deals with Ericsson are good ones just because Ericsson agrees to help Qualcomm's infrastructure business. Qualcomm's primary aim should be to use their IPR to open new markets, not become Ericsson's lackey. Do not allow everyone else to catch up by an arbitrary (i.e. not performance driven) change of standards. All JMO Clark