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Talk : Communications : Qualcomm - Coming Into Buy Range
To: Maurice Winn (25921 )
From: Michael Friday, Apr 2 1999 4:30PM ET
Reply # of 26006
Telecom chiefs on same wavelength After resolving a lengthy patent dispute, Ericsson, Qualcomm look to a 'predominantly wireless'future
cnn.com
Fresh from an employee meeting in San Diego, Qualcomm Chairman and
Chief Executive Irwin Jacobs and Ericsson President and Chief Executive
Sven-Christer Nilsson sat down with Elizabeth Douglass to discuss their past
relationship and the future of wireless telecommunications.
Question: Over the years, the relationship between your two companies has
been icy, to say the least. How has that changed with this agreement?
Jacobs: I think we've always had a good personal relationship. In business,
when you are not joined together, you end up competing, and I think both
companies have competed reasonably fiercely.
Nilsson: I think that we have been able to differentiate between our personal
relations and the business. We have had a lot of feelings and emotions in this
as well. But we are both rational in the way we do business, and we felt this
was an opportunity for both companies.
Question: Some people believe there was some stubbornness and ego on
both sides that delayed this pact.
Jacobs: This was really a business issue that was many-dimensional.
They involve Qualcomm; they involve many U.S. manufacturers and many
manufacturers and licensees around the world; they involve operators who
have taken pioneering steps with CDMA (code division multiple access, the
technology developed for commercial use by Qualcomm); and they involve
regions and countries and jobs and economies. So it's really a very, very
complicated situation. Sure, I suspect there may be a little ego and personal
feelings among any of us, but I think the main thing is how do we do good
business and how do we do the right thing for a wide variety of people,
including our shareholders.
Nilsson: Out there in the barricade, in the marketplace, we were fighting very
much for our causes. We also have to appreciate that people working with
new systems and new technologies, they normally have a big pride in what
they have achieved. This is really also what makes things happen, that you
have a belief, that you have a vision that you believe in.
Question: What was the biggest factor in finally reaching agreement now?
Jacobs: This is a very rapidly growing industry, and every day there is some
new event that puts pressure on you, if you have some disagreements, to get
those ironed through. I think the hardest deadline was the trial, and that got us
talking very, very seriously.
Nilsson: It's not too uncommon to make a deal on the courthouse steps. I
wasn't interested in spending so much money on the court proceedings. I think
we both realized that whatever resolution that we would get from this trial, it
would not resolve the issue. What we did was to look beyond the trial a touch
to get a more holistic view of the issues between our two companies.
Question: How long did it take to hammer out this deal?
Nilsson: I would say we started really to bring up a very good dialogue about
a year ago. I would say for the last six months, we had much more intense
(discussions). And then the last three months, they were extremely intense.
Question: What about the future, in services and in phones and the like?
Nilsson: The third generation is really about mobile Internet and mobile
electronic mail. The next battleground will actually be in media and content
coming into this. Here I would say that the world will be predominantly
wireless in the future.
Jacobs: Where the world is going really is toward Internet protocol, and
Internet protocol not only for the data, but also for the voice. Over time,
although it appears we have something of a divide between the networks, I
think even that is going to get blurred because we're all going to be converging
much more toward the Internet.
Question: Where are phone companies going to be in the future?
Jacobs: Once you provide low-cost Internet connections, then a lot of
services that one has had to buy through the traditional operators suddenly are
available from entrepreneurs offering services on the Net. I think the services
direction will change quite a bit to being supported by the Net, and once you
have that access, you can do all sorts of different things. The operators will
still have some value-added services, but probably much less so than they
have had in the past.
On the handset side, that's going to be an interesting change too. Clearly,
we're all going toward more powerful handsets. I believe that the laptop
computer will probably disappear, and the handset will replace it. Voice
recognition will have to be a key part of that.
The direction of manufacturing may change as well.
Nilsson: I have a different view there. Today, we see that the traditional
telecom companies have some features in their networks that are extremely
important. That is, they have robust networks, they have quality of service,
they have a guaranteed delivery in real time, etc. The datacom market and
some of the Internet service providers, they have a best-effort approach to
this: ''If we can deliver, we deliver. If we don't do it today, we'll do it
tomorrow,'' although I exaggerate a little bit.
The Internet protocol approach has a lot of interesting benefits for any
operator because it is simple, it is cost-efficient and convenient to use. What is
happening is we are seeing a convergence between the two.
We will also see a trend toward converging operators. I believe that we will
see 10 to 15 big global operators carrying all of the international traffic. We
have seen that convergence trend already. I believe that the traditional
telecom operators -- the ones that really embrace the Internet protocol, the
datacom thinking -- they will be the winners. But in all of these areas, there
will be an element of the traditional carriers, because they own the customers
today -- they have the access to the customers.
cnn.com
Fresh from an employee meeting in San Diego, Qualcomm Chairman and
Chief Executive Irwin Jacobs and Ericsson President and Chief Executive
Sven-Christer Nilsson sat down with Elizabeth Douglass to discuss their past
relationship and the future of wireless telecommunications.
Question: Over the years, the relationship between your two companies has
been icy, to say the least. How has that changed with this agreement?
Jacobs: I think we've always had a good personal relationship. In business,
when you are not joined together, you end up competing, and I think both
companies have competed reasonably fiercely.
Nilsson: I think that we have been able to differentiate between our personal
relations and the business. We have had a lot of feelings and emotions in this
as well. But we are both rational in the way we do business, and we felt this
was an opportunity for both companies.
Question: Some people believe there was some stubbornness and ego on
both sides that delayed this pact.
Jacobs: This was really a business issue that was many-dimensional.
They involve Qualcomm; they involve many U.S. manufacturers and many
manufacturers and licensees around the world; they involve operators who
have taken pioneering steps with CDMA (code division multiple access, the
technology developed for commercial use by Qualcomm); and they involve
regions and countries and jobs and economies. So it's really a very, very
complicated situation. Sure, I suspect there may be a little ego and personal
feelings among any of us, but I think the main thing is how do we do good
business and how do we do the right thing for a wide variety of people,
including our shareholders.
Nilsson: Out there in the barricade, in the marketplace, we were fighting very
much for our causes. We also have to appreciate that people working with
new systems and new technologies, they normally have a big pride in what
they have achieved. This is really also what makes things happen, that you
have a belief, that you have a vision that you believe in.
Question: What was the biggest factor in finally reaching agreement now?
Jacobs: This is a very rapidly growing industry, and every day there is some
new event that puts pressure on you, if you have some disagreements, to get
those ironed through. I think the hardest deadline was the trial, and that got us
talking very, very seriously.
Nilsson: It's not too uncommon to make a deal on the courthouse steps. I
wasn't interested in spending so much money on the court proceedings. I think
we both realized that whatever resolution that we would get from this trial, it
would not resolve the issue. What we did was to look beyond the trial a touch
to get a more holistic view of the issues between our two companies.
Question: How long did it take to hammer out this deal?
Nilsson: I would say we started really to bring up a very good dialogue about
a year ago. I would say for the last six months, we had much more intense
(discussions). And then the last three months, they were extremely intense.
Question: What about the future, in services and in phones and the like?
Nilsson: The third generation is really about mobile Internet and mobile
electronic mail. The next battleground will actually be in media and content
coming into this. Here I would say that the world will be predominantly
wireless in the future.
Jacobs: Where the world is going really is toward Internet protocol, and
Internet protocol not only for the data, but also for the voice. Over time,
although it appears we have something of a divide between the networks, I
think even that is going to get blurred because we're all going to be converging
much more toward the Internet.
Question: Where are phone companies going to be in the future?
Jacobs: Once you provide low-cost Internet connections, then a lot of
services that one has had to buy through the traditional operators suddenly are
available from entrepreneurs offering services on the Net. I think the services
direction will change quite a bit to being supported by the Net, and once you
have that access, you can do all sorts of different things. The operators will
still have some value-added services, but probably much less so than they
have had in the past.
On the handset side, that's going to be an interesting change too. Clearly,
we're all going toward more powerful handsets. I believe that the laptop
computer will probably disappear, and the handset will replace it. Voice
recognition will have to be a key part of that.
The direction of manufacturing may change as well.
Nilsson: I have a different view there. Today, we see that the traditional
telecom companies have some features in their networks that are extremely
important. That is, they have robust networks, they have quality of service,
they have a guaranteed delivery in real time, etc. The datacom market and
some of the Internet service providers, they have a best-effort approach to
this: ''If we can deliver, we deliver. If we don't do it today, we'll do it
tomorrow,'' although I exaggerate a little bit.
The Internet protocol approach has a lot of interesting benefits for any
operator because it is simple, it is cost-efficient and convenient to use. What is
happening is we are seeing a convergence between the two.
We will also see a trend toward converging operators. I believe that we will
see 10 to 15 big global operators carrying all of the international traffic. We
have seen that convergence trend already. I believe that the traditional
telecom operators -- the ones that really embrace the Internet protocol, the
datacom thinking -- they will be the winners. But in all of these areas, there
will be an element of the traditional carriers, because they own the customers
today -- they have the access to the customers.
o: Maurice Winn (25921 )
From: Michael Friday, Apr 2 1999 4:30PM ET
Reply # of 26006
Telecom chiefs on same wavelength After resolving a lengthy patent dispute, Ericsson, Qualcomm look to a 'predominantly wireless'future
cnn.com
Fresh from an employee meeting in San Diego, Qualcomm Chairman and
Chief Executive Irwin Jacobs and Ericsson President and Chief Executive
Sven-Christer Nilsson sat down with Elizabeth Douglass to discuss their past
relationship and the future of wireless telecommunications.
Question: Over the years, the relationship between your two companies has
been icy, to say the least. How has that changed with this agreement?
Jacobs: I think we've always had a good personal relationship. In business,
when you are not joined together, you end up competing, and I think both
companies have competed reasonably fiercely.
Nilsson: I think that we have been able to differentiate between our personal
relations and the business. We have had a lot of feelings and emotions in this
as well. But we are both rational in the way we do business, and we felt this
was an opportunity for both companies.
Question: Some people believe there was some stubbornness and ego on
both sides that delayed this pact.
Jacobs: This was really a business issue that was many-dimensional.
They involve Qualcomm; they involve many U.S. manufacturers and many
manufacturers and licensees around the world; they involve operators who
have taken pioneering steps with CDMA (code division multiple access, the
technology developed for commercial use by Qualcomm); and they involve
regions and countries and jobs and economies. So it's really a very, very
complicated situation. Sure, I suspect there may be a little ego and personal
feelings among any of us, but I think the main thing is how do we do good
business and how do we do the right thing for a wide variety of people,
including our shareholders.
Nilsson: Out there in the barricade, in the marketplace, we were fighting very
much for our causes. We also have to appreciate that people working with
new systems and new technologies, they normally have a big pride in what
they have achieved. This is really also what makes things happen, that you
have a belief, that you have a vision that you believe in.
Question: What was the biggest factor in finally reaching agreement now?
Jacobs: This is a very rapidly growing industry, and every day there is some
new event that puts pressure on you, if you have some disagreements, to get
those ironed through. I think the hardest deadline was the trial, and that got us
talking very, very seriously.
Nilsson: It's not too uncommon to make a deal on the courthouse steps. I
wasn't interested in spending so much money on the court proceedings. I think
we both realized that whatever resolution that we would get from this trial, it
would not resolve the issue. What we did was to look beyond the trial a touch
to get a more holistic view of the issues between our two companies.
Question: How long did it take to hammer out this deal?
Nilsson: I would say we started really to bring up a very good dialogue about
a year ago. I would say for the last six months, we had much more intense
(discussions). And then the last three months, they were extremely intense.
Question: What about the future, in services and in phones and the like?
Nilsson: The third generation is really about mobile Internet and mobile
electronic mail. The next battleground will actually be in media and content
coming into this. Here I would say that the world will be predominantly
wireless in the future.
Jacobs: Where the world is going really is toward Internet protocol, and
Internet protocol not only for the data, but also for the voice. Over time,
although it appears we have something of a divide between the networks, I
think even that is going to get blurred because we're all going to be converging
much more toward the Internet.
Question: Where are phone companies going to be in the future?
Jacobs: Once you provide low-cost Internet connections, then a lot of
services that one has had to buy through the traditional operators suddenly are
available from entrepreneurs offering services on the Net. I think the services
direction will change quite a bit to being supported by the Net, and once you
have that access, you can do all sorts of different things. The operators will
still have some value-added services, but probably much less so than they
have had in the past.
On the handset side, that's going to be an interesting change too. Clearly,
we're all going toward more powerful handsets. I believe that the laptop
computer will probably disappear, and the handset will replace it. Voice
recognition will have to be a key part of that.
The direction of manufacturing may change as well.
Nilsson: I have a different view there. Today, we see that the traditional
telecom companies have some features in their networks that are extremely
important. That is, they have robust networks, they have quality of service,
they have a guaranteed delivery in real time, etc. The datacom market and
some of the Internet service providers, they have a best-effort approach to
this: ''If we can deliver, we deliver. If we don't do it today, we'll do it
tomorrow,'' although I exaggerate a little bit.
The Internet protocol approach has a lot of interesting benefits for any
operator because it is simple, it is cost-efficient and convenient to use. What is
happening is we are seeing a convergence between the two.
We will also see a trend toward converging operators. I believe that we will
see 10 to 15 big global operators carrying all of the international traffic. We
have seen that convergence trend already. I believe that the traditional
telecom operators -- the ones that really embrace the Internet protocol, the
datacom thinking -- they will be the winners. But in all of these areas, there
will be an element of the traditional carriers, because they own the customers
today -- they have the access to the customers.
Note: Repeats. Suggest read top third |
