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

To: idler who wrote (25013)	3/25/1999 3:50:00 PM
From: ZChazz	Read Replies (1) \| Respond to of 152472

Conference Call Highlights Introduction Purchase includes infrastructure, R&D, and SELECTED "customer commitments". Irwin OPERATORS,who have been pushing for the single standard/ 3modes, will now choose one or more modes. No more IPR issues. MULTICARRIER mode fits in CDMA-1 bandwidth and is also compatible with GSM. Royalty rates will reflect "respective patent positions". Sven (Ericsson CEO) Ericsson was already in the lead for 3G with WCDMA trial systems and 1st 3g licenses "about to be issued". Ericsson will establish a "Global center of excellence for CDMA 2000" in San Diego (he will be in SD tomorrow). Will aggressively enter US CDMA handset market with first models next year. Deal will enably E to offer "technology leadership" with both WCDMA & CDMA 2000 (standards neutral/ OPERATORS choose). Q/A Q Will E cooperate with Q for CDMA-1 in China? A.(Sven) E will "contend" in CDMA in China. Q. How will cross licensing work? A.(Irwin)Both ways -proportional to patent portfolio. Q.What amount will be paid for the purchase? A.(Sven) Not disclosing, but "win-win". Q.How will sale affect q future growth? A.Q will continue to grow in spite of loss of "several $100M" of infra business. ASICS and associated SW will continue to be aggressively developed for both infrastructure and handsets. More handset manufacturing capacity will be added. Globalstar, digital cinema, Eudora, Omnitracs all primed for growth. Q.Will E buy Q ASICS? A. (Sven) Considering it. Q. Please expand on compatibility of the three modes. A.(Sven) OPERATORS will select. Phones will be able to handle "both". A. (Irwin))All modes will work with both NETWORKS(GSM-MAP and ANSI-41). OPERATORS will choose modes. Expect OPERATORS to support "further convergence". No more IPR issues. Timeliness is an issue. Q. How hard is it to design multifunction phones? A.(Irwin) Manageable. MultiBAND is hardest, but has already been done in essentially the same size package. MultiMODE is basically incorporated in ASIC (easy). MultiNETWORK is SW (non recurring only). TESTING of phones with all these modes is more complicated. Q. What is your plan to be competitive in the handset market? A. (Irwin) There is plenty of room for everybody in this rapidly growing market (including our 40 some licensees). Our new offerings include ASICS,PDQ and the thin phone. Q. What effect will infrastructure sale have on technology development and transfer? A. (Irwin) Infrastructure was essential in ESTABLISHING CDMA. We will continue to innovate with infrastructure ASICS and SW. Q. How will E avoid the problems encountered by Motorola and Phillips in implementing CDMA? A. (Sven). We've been working on CDMA for 10 years and have evaluated CDMA-1. My VERY SUBJECTIVE take on the conference follows: Irwin is a happy man. He was responsive and confident. Sven is defensive but relieved (still in the "we invented CDMA mode). Operators will choose the modes, not E. Hard to see why they wouldn't pick CDMA 2000! The "uniform royalty rates" will flow mostly in the direction of the Q.