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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bahama who wrote (1094)	4/5/1999 9:24:00 PM
From: davidm	Read Replies (1) \| Respond to of 54805

I'm in!! Bought QCOM today!! Yahoo!! I spent the entire weekend reading all the comments about qualcomm and its emerging gorilla status. After countless hours of hyping I decided this morning to get some. I could only get 75 shares (didn't want to sell anything), but boy am I a happy camper. Thanks to all for enlightening me on this emerging power play.

To: Bahama who wrote (1094)	4/5/1999 10:48:00 PM
From: DaveMG	Read Replies (4) \| Respond to of 54805

Since you guys seem to be jumping on the Q bandwagon with abandon you should be forewarned that this 3G standards brouhaha is not easy to get your arms around. A lot of what you read is hype and misinformation. The very difficulty of figuring out what has been and is going on is what kept QCOMs stock price bouncing back and forth between 40 and 65 for all that time. The IPR fight with ERICY was only part of the story, and the ultimate parameters for "the standard" or "family of standards" are yet to be determined. You will need to go back and reread the QCOM thread where we painstakingly picked apart the technical and political issues in order to get a handle on what was happening if you hope to really understand this 3G game and your investment in QCOM. It's been suggested that you especially read posts by Gregg Powers, Clarke Hare and Walt Houston, maybe that's enough to reconstruct things..I don't know...Also read the Q News thread from beginning to end .. this should help a lot. Here's some of the basic ideas: 1) Any iteration of CDMA whether it be CDMAone,WCDMA, CDMA2000 uses essential QCOM IPR. That may seem obvious now that there is a settlement and every brokerage house is touting the stock, but that insight enabled those of us who were able to withstand all the bullshit to get in at what now look like very good prices. 2)WCDMA was "designed" by Ericsson and Nokia to replace GSM but it seems that many of the technical parameters chosen were simply attempts to get around Q IPR or to purposefully create incompatibilities with CDMA2000, which is the 3G standard that all CDMA one networks ieSprint, Bel Atlantic, Airtouch, CDMAone networks in Mexico, Japan, Brazil,etc, and now hopefully China, will move to. There is a QCOM Whitepaper listing the most important technical issues from a QCOM perspective at: Message 6207324 And the CDMA Dev Group also has some technical stuff on CDMA2000/WCDMA. It was Ericssons hope that they could strand or isolate CDMAone and its proponents ie network operators and equipment manufacturers by leveraging the GSM 2nd gen dominance into a 3rd gen CDMA worldwide standard, simultaneously co-opting Q technology while isolating QCOM and its partners. You need to understand that CDMAone networks will evolve “organically” to 3G, ie incremental changes such as software upgrades and chipset exchanges will be necessary but not wholesale replacement of the air interface equipment. GSM operators on the other hand must start over, and this will be VERY EXPENSIVE. This was in fact Ericssons problem. They were/are selling legacy equipment, equipment that uses a scarce resource inefficiently,spectrum, They needed to come up with a way to retain their customers, to keep QCOM from doing a CDMAone overlay Message 3456597 If the entire world moved to WCDMA, then CDMAone operators like Sprint would ALSO have to start over, at least that was there hope. Hence, WCDMA, “Made in Europe”, “the” upgrade for GSM, etc…..otherwise known as FUD. You also should know that as far as I'm aware, NOBODY has demonstrated that WCDMA is any better at data or anything else than CDMA2000…I could go on but you should do your own homework… This is also interesting: Message 6502376 The question of what direction the standards will go in may hinge on what NTT DoCoMo decides to do. They are expected to be the first to deploy a 3G network in a new piece of spectrum. Their technical choices MAY set the tone for the Europeans.. It's my belief that QCOM Chmn Dr Irwin Jacobs believes that operators such as Vodafone/Airtouch will bring so much pressure for compatible/converged 3G systems to the negotiations that there will ultimately be small differences between the various CDMA approaches, regardless of acronyms deployed by the various parties, that these differences will not be so large as to disadvantage QCOM, and that for this reason he is stepping aside from the fray, convinced he's protected his personal/company/shareholder interests. One thing you can be sure of is that this issue will again rear its head . DMG