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

To: Eric L who wrote (25451)	3/28/1999 10:11:00 PM
From: blue_lotus	Read Replies (1) \| Respond to of 152472

Hi Eric, I agree with your observation, but hasten to add that from what the CC led us to believe, it is irrelevant whether the different modes are converged or not..... There is one agreed CDMA standard and its royalties comes to QCOM. So what is the need for qualcomm to fight over mode details. These don't effect the bottom line, in terms of royalties paid. As far as the Handset division is concerned, QCOM shall do as Nokia has/is doing, focus on Handsets with out an Infrastructure division with what ever CDMA standards are out there. In any case, I don't believe that QCOM's negotiating power came from its having an Infrastructure division, it was a result of its IPRs, which it still holds. -Raj

To: Eric L who wrote (25451)	3/28/1999 10:59:00 PM
From: DaveMG	Respond to of 152472

Losing the network business entirely weakens Qualcomm's ability to influence third generation digital standard development and probably affects the long term success of the handset division". This is clearly important but is it correct. Why would having a small money losing infrastructure division have influenced 3G? It's Q's patents,CDMA expertise, and relationships with the likes of Airtouch that are influencing 3G. Not all companies can be great at all things. Q is setting itself up to supply a reasonable percentage of chipsets to a burgeoning market, not all the chipsets to all manufacturers.Time will tell how the others will do, but many companies will choose to subcontract. ERICSon will NOT I presume buy chips form MOT whereas they might from Q for example.Q might continue to outpace their rivals who have far flung complex empires with lots on their minds.CSCO doesn't make the chips that go into its equip do they?

To: Eric L who wrote (25451)	3/29/1999 9:09:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

The suggestion I get from reading your comment is that Ericsson may have purchased the infrastructure business in order to make sure CDMA would die on the vine, so to speak, thereby preserving the GSM system. The only trouble with that scenario is that Ericsson has not been doing as well in GSM as its competitors. Ericsson's only hope for outperforming its GSM competitors is to do a deal like this with QUALCOMM. So my conclusion is that the deal is for real, and, as I said in an earlier response a few days ago, if I owned Nokia, I'd sell it!