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

To: Clarksterh who wrote (24153)	3/13/1999 4:36:00 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 152472

Clark, it's quite possible that Ericy would value Q! infrastructure much higher than we do. They are quite desperate to get a presence in CDMA and they need to do it quickly. I suppose they'll be able to bring some leveraged production line experience to bear, which Q! lacked. Having infrastructure would also leverage their marketing, operations and network capabilities. They'll be able to produce QCells to overlay GSM across Europe, probably more effectively than Q! would be able to, in a complete overlay turnkey solution for existing customers. For example, Ericy in New Zealand will be able to use their existing presence and relationships to replace Telecom New Zealand's TDMA and analogue networks with cdmaOne ready for upgrade to WWeb. For Q! to do it would be a tall order. Sure they could produce the QCells, but how would they get them installed cheaper than Ericy could? It makes sense to me. I'm delighted to read that Irwin is uncompromising. I doubt that is true because uncompromising to me means stupid and if there is one thing Irwin is, it is intelligent. Having a strong position and knowing it and knowing what it is worth might appear to others as uncompromising; I call it sound negotiating. I'm comfortable with Ericy buying the infrastructure effort at the right price. Since Q! and Ericy seemed to both be saying that any agreement would be comprehensive, I suppose this is the prelude to a cdmaOne and WWeb licensing, with a unified Q! chip rate standard and the ITU able to strut out of Brazil with an agreement to wave to the cheering masses. It will mean the Texan judge gets some time off for good behaviour by Q! and Ericy. The lawyers will get some time off too. China will immediately order a bunch of cdmaOne, as will Singapore. Margins will zoom. Handset sales are already zooming. The Fun has Begun! I hope Q! doesn't undersell it all. I have a suspicion that everyone, including Q! undervalues just how much money is going to flood into the CDMA world. That probably means that Ericy is getting quite a bargain. I suspect that Ericy, China and others were under much more pressure to buy than Q! was to sell. Mqurice [Assuming that the rumour is true!]