InterDigital Inc (IDCC)

[laranger]

Jim.

I'm surprised I haven't seen more discussion about the coming JV between Nokia and Sanyo on CDMA handsets.

Seems like this is a huge move by the Espoo Skunkworks:

1. The JV will have to sign a new license with QCOM, among others.

2. Nokia will not longer be able to report these unit sales, which may significantly affect its worldwide share. (Some analysts may chose to SWAG the numbers, so as not to distort their position).

3. Margins should go up, as well as earnings. But sales will obviously decline.

Is this a move to (a) break with CDMA and make a virtual commitment to WCDMA and its extensions, and (b) spike margins and profitability for next generation phones?

I haven't the slightest idea how many units are involved, and wonder whether this could be premature.

I'd appreciate hearing from those who have better insight into this move.