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Monday, September 17, 2007 1:56:33 PM
Rich I'm concerned about this decision and how it might auger a bad result in Europe for QCOm as well. While it is true the mighty Q does not have the same dominant position in Europe that Microsoft has, it is also true that cdma of one sort or another will be (if not already) the dominant position. The Q wants and justifiably,should get royalties on every 3G out there. It is just a matter of time till 3G with one cdma flavor or another will be overwhelmingly used. Now the arguement goes that Q is giving discounts on the royalties it charges if the customer will buy Q's chips. It is this linking that is only alleged (not yet proven) that may be cause for concern.If it is done,it is a practice that should be stopped in Europe because like with Windows being the cdma 3G engine you can go elsewhere for an operating system, but it will cost you either productivity, or extra money to do so. Similarly if you use cdma 3G and wish to use say TI's chips it will probably cost more than Q's when you factor in the discounted royalty. That is why Q gives the discount, to gain chip customers. This might violate Europe's concept of an even playing field. Now the history of this is quite different from Microsoft. In fact it was Q that was kept out of Europe until they finally realized that Q had built a better mousetrap. So all those years of being kept on the outside, of being the mouse against the lion ought to count for somethng is some of the eyes of the Europeans who will judge this issue. We are not Microsoft, but we had better take care because we dont want to cross that line and we are getting closer to it.
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