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

To: Jon Koplik who wrote (25324)	3/27/1999 12:26:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Ericy Blinked 1st?> 3/26/99 - ERICSSON BUYS WAY TO 3G TECHNOLOGY PEACE Mar. 25, 1999 (WIRELESS TODAY, Vol. 3, No. 57 via COMTEX) -- In the high-stakes game of chicken surrounding third-generation (3G) wireless technology and intellectual property rights (IPRs), L.M. Ericsson AB [ERICY] blinked first. That's one way of assessing today's deal in which Ericsson agreed to acquire for an undisclosed amount the CDMA infrastructure business of Qualcomm Inc. [QCOM], which has been the Swedish company's nemesis in the battle for early superiority in 3G technology development. Of course, Ericsson and Qualcomm framed the sweeping agreement in more amicable terms. Speaking to a roomful of Wall Street analysts in New York, Ericsson CEO Sven-Christer Nilsson said the effects of the deal "will be felt to the far corners of this globe." Qualcomm Chairman and CEO Irwin Jacobs promised it "will allow expansion of existing and new wireless services to proceed smoothly with significant benefits to consumers worldwide." Jacobs could afford to be magnanimous after battling it out in patent litigation with Ericsson for the past 21/2 years: Qualcomm's stock price, already at an all-time high, tacked on nearly an additional 10 percent in over- the-counter trading earlier today. From their comments, it appeared the two executives see their deal as eliminating in a single stroke not only their strategic rivalry and the pending litigation over IPRs for CDMA, but the global debate over 3G standards, and the trade dispute between the United States and the European Commission that had been brewing over access to Europe's 3G technology market. Clearly, both companies stand to gain from settling their longstanding disputes and by cross-licensing their respective patent portfolios. The CDMA patents in question run the gamut from IS-95 to the proposed 3G standards wideband CDMA (W-CDMA) and cdma2000. Qualcomm also holds a leading position in IS-707, the packet data standard for CDMA. This carries 3G overtones in the race to develop RF technology supporting higher data rates. Qualcomm's and Ericsson's licenses are royalty-bearing for CDMA subscriber terminals sold by either party, giving Ericsson entry into the CDMA handset market. Nilsson said Ericsson intends to move into the North American CDMA market "right away," and promised that the industry would see an IS-95 CDMA handset from Ericsson "next year." Today's agreement also spells out the companies' joint support for the wireless industry's proposed solution to the highly contentious issue of whether there should be one or multiple standards for the 3G radio transmission technology. Namely, Qualcomm and Ericsson will support three optional modes of operation for CDMA - direct-sequence frequency division duplex (FDD), multi-carrier FDD, and time division duplex. In essence, this means a wide-open market for supplying 3G network equipment is a certainty. The pace of events related to 3G was expected to pick up in the aftermath of the International Telecommunication Union's Task Group 8/1 meeting in Fortaleza, Brazil. Sources said rumors that a deal was in the offing were rife around Qualcomm headquarters this week, with speculation ranging from Ericsson merely licensing Qualcomm's patents to acquisition agreements involving Northern Telecom Ltd. [NT] (Nortel) or Nokia Corp. [NOK/A] rather than Ericsson. Whether Ericsson is getting very much in acquiring Qualcomm's terrestrial CDMA infrastructure operations - including R&D, engineering and production facilities in San Diego (where Ericsson's global CDMA headquarters will set up shop) and in Boulder, Colo. - is an open question. Qualcomm previously entered into agreements regarding the production and supply of CDMA infrastructure with Nortel, Hitachi Ltd. [HIT] and Hughes Network Systems [GMH], although none of these has panned out for the participants in a big way. Jacobs referred specifically to the Nortel deal today, noting that it remains in place and is unaffected by the new agreement with Ericsson. Qualcomm has been busy augmenting its QCore family of base stations and mobile switching centers with additions to its QCell base station line, but the company recently acknowledged softness in its infrastructure business as larger competitors able to give a little more on equipment prices seek to grab CDMA market share. A majority of the 700 jobs that Qualcomm ordered eliminated in February came from its infrastructure operations. In this sense, the infrastructure acquisition may really be the price that Ericsson - as the only major wireless supplier to refuse to license Qualcomm's patents - will have to pay to ensure that it wouldn't be sidelined in the push toward 3G by Qualcomm's oft-repeated vows to "vigorously" enforce its IPRs. Qualcomm, meanwhile, will focus on its CDMA handset and chipset production operations, its Wireless Knowledge LLC joint venture with Microsoft Corp. [MSFT], and its Globalstar L.P. [GSTRF] and OmniTRACS businesses. According to Jacobs, Qualcomm also is looking at new opportunities in digital cinema. -0-

To: Jon Koplik who wrote (25324)	3/27/1999 12:56:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Anyone want to take a shot at this? (if true)> Wonderful Qualcomm by: Jimtracker 16317 of 16318 We have all made a ton of money on this stock, but there is always someone who gets it in the shorts. The employees that are going to Erickson, are being screwed out of their stock options. Qualcomm is trying to close the deal a week before vesting and are now treating the employees that are in limbo rather badly. Qualcomn naturally wants this deal to go smoothly but it appears a class action lawsuit will make this transition rather bumpy