Qualcomm Inc (QCOM)

[Eric]

InterDigital Licensees' 3G Share

... including cdma2000 R'0 1xRTT (IS-2000) which IDCC includes as '3G' as well as 1xEV-DO and WCDMA.

<< Captain: IDCC has signed with those who are currently making and selling over 75% of the 3G handsets today. Ummm. Were you aware of that? ... Data_Rox: 75%? can you back that up with any statistics? If IDCC is currently getting paid on 75% of the 3G market, the growth potential is much lower than I calculated. I'll wait again for your reply. >>

InterDigital's earnings CC yesterday clarified InterDigital's claims on that subject when Janet Point of IR responded to a question in Q&A ...

... we estimate we’ve got about 35 or so percent of the market under license and paying us today for 3G which includes both that CDMA 2000 and the wideband CDMA phones, which is up I think this time last year we might have been around 25%. And what you have in the dynamics is the addition of LG as an important licensee and they have pretty significant share in 3G. And the thing that’s happening in the other direction which Rich and Bill alluded to about the importance of having a broad basis of licensees maybe years ago NEC was a market leader in 3G and has dominant share and as other folks have entered the market, their market share has flipped. So as we’ve added new licensees like Panasonic and Sharp, they’re starting to pick up what’s falling off from NEC. ... Yes, we’re about 35% of the 3G phones being sold today that would be the percent that we have under licenses and I don’t think we’ve made an estimate for where we expect to be in ’07.

- Eric -