InterDigital Inc (IDCC)

[robjer]

someobdy had an interesting post about royalty rates of 4g/lte vs 3g.

I hadn't seen it discussed in detail, but it makes common sense to me that the era of the telecom stocks going hyperbolic as they did when discussion of 3G was in its infancy is over.

and that the rates companies can get from the next iteration (4G/LTE) will be light years away from what was paid by the manufacturers to get on 3G.

I'm wondering if that doesn't make IDCC close to fairly valued at this level with a contracted P/E based on limited growth of 4G/LTE royalties.

Now IDCC may be a better company than they were when 3G first started--but they were late to the game to get QCOM-type royalties from everybody AND nearly everybody fought IDC tooth and nail before paying the minimum possible.

In this way of thinking IDCC is no longer a real growth stock unless by acquisitions and that the owners here now should expect more of a staid dividend-paying company.

Fine for widow and orphans but not a telecom homerun anymore.

or Icould be way off.
but I think that goes a ways towards explaining why the company stands at this price and p/e

robj