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

To: JGoren who wrote (25066)	3/25/1999 4:34:00 PM
From: Ruffian	Respond to of 152472

Interpretation of deal looks good for Q> ERICSSON (ERICY) 23 1/16 +2 & QUALCOMM (QCOM) 95 5/16 +7 15/16 A major settlement today between the two wireless telecom equipment makers, which benefits Qualcomm greatly, but also gets legal troubles out of Ericsson's path. In addition, because Ericsson is purchasing Qualcomm's CDMA infrastructure business, Ericsson's position as a total supplier here becomes much stronger. CDMA (code division multiple access), principally developed by Qualcomm, allegedly infringed on Ericsson's patents, leading to a 1996 lawsuit. Today's action puts an end to that, and a single standard for CDMA emerges as well, which means Qualcomm can continue to make CDMA handsets and know that they will work with Ericsson's infrastructure. The real battle going on is what the future technical standard for "third-generation" (3G) cell phones will be, allowing voice, data, and video transmissions. The other two standards are GSM (global system mobile) and TDMA, (time division multiple access). How the 3G standard battle will play out is uncertain, but today's settlement puts two principal players on the same team. It also means that Ericsson can eventually build a phone that will work with all three standards. For users that means a single cell phone, and phone number, that will work anywhere throughout the world, eventually. The wireless telecom area is going to be an exciting area over the next few years. Other players in the field are Nokia (NOK.A) and Motorola (MOT)