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

To: John Stichnoth who wrote (25008)	3/25/1999 12:53:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

John - 1. Ericy will likely make more money off the infrastructure business than Q could. Thus, they increase their own value more than Q could in the long term. And it is for this very reason that a JV would have been ideal. Clark

To: John Stichnoth who wrote (25008)	3/25/1999 1:07:00 PM
From: engineer	Respond to of 152472

Some history and some insights..... qualcomm got into the business of infra because they could not get AT&T and Mot to start shipping this stuff, hence to get the standard out there, they needed the infra div to get going. they did this and won. the division is not something they need any more to succeed. with Ericy now pushing CDMA infra and building out system which are CDMAOne compatible and Qualcomm keeping the handset division, the opportunites to expand the business alot farther are much greater for having sold the group then for having kept it. It would have been nice to have kept the small manufacturing arm which supplied the parts to Nortel, but we can't keep all the goodies. This will go a long way to pushing the CDMA standards and patents that Qualcomm owns, while getting the world to move ahead. the net benefit is that there is no more GSM versus CDMA crap any more...it is just let's go push this thing and grow. think of it like the Pc wars. Nobody is out there (expect the small group from Apple...) saying it is PC or MAC, it is which PC is it we are going to build and how do we get the best system out there the fastest. Inovate on the PC and make it better for everyone. So if you hold patents and you can make it move fast, then you can become another Intel or Microsoft and let the industry prosper. I do not feel that the specifics of the deal in terms of a short term gain in who won more or who has more people liking them today is relevant. It is a NIT in the overall long term goal here, which is to get wireless out into many parts of he world where it is not. Hopefully now everyone can work on openning up China, russia, India, and others to CDMA and if Qualcomm can continue to make in-roads by keeping a 10-15% share of this market in the process and the market grows by 100 times, then they win. If they get royalties on all this at the same time, then they win bigger. I think by keeping this all in perspective, alot can be made of this deal. I look for China and Russia to open up to CDMA within 6 months and the shipments to begin in 1 year.