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To: Raymond who wrote (1702)	3/30/1999 11:31:00 AM
From: H.A.M.	Read Replies (1) \| Respond to of 34857

redherring.com

To: Raymond who wrote (1702)	3/30/1999 11:53:00 AM
From: Clarksterh	Respond to of 34857

Raymond - Re Royalties: There is only one way in which the royalties could be substantially lower than those Qualcomm was getting for CDMAOne and yet Qualcomm wouldn't get sued for lying in their last CC. That would be if all royalty rates, including those for CDMAOne, dropped at the introduction of 3gCDMA. Just about every other scenario was discussed with some clarity in the CC, and even the issue of dropping was discussed obliquely (The comment I referenced earlier saying that 'those who had expected W-CDMA to have lower royalties were obviously mistaken.' Hopefully in the next CC someone will ask if they agreed to drop their CDMAOne royalties with the intro of 3g.). Given that Qualcomm is incredibly unlikley to have opened themselves up to a shareholder suit I'd say it is a very good bet than Qualcomm is getting between 3 and 6% royalties on handsets. As for disclosure of the royalty rates, I'd be surprised if they released it. Niether GSM/ETSI nor Qualcomm has a history of releasing such things, probably because both are pretty high. Clark PS If your source for the contention that W-CDMA royalties will be low is Ericsson, I would assume that even you would admit that Ericsson is vastly better at spin than Qualcomm. This has both its positives for Ericsson (e.g. the long term survival of W-CDMA) and negatives (e.g. you need to be much more careful to think about what they are saying and interpret it as narrowly as possible.). If Ericsson is your source I would strongly reco that you think about the exact wording of what they said.