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 | http://www.gilder.com/ | Issue 299.0/June 15, 2007

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HEADLINES:

-  The Week / The Essential Contributions of Qualcomm
-  Friday Feature / Freedom, Not Climate, Is At Risk
-  Friday Blogger Bonus / Apocaholics Anonymous
-  Readings /


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The Week / The Essential Contributions of Qualcomm

Gilder Telecosm Forum member “JM” (6/15/07): I wanted to offer a few comments in response to two recent Bloomberg articles discussing the BRCM vs. QCOM litigation.

#1. BRCM In Talks With Phone Makers after Ruling:
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=23623834&srchtxt=bloomberg

#2. Broadcom's McGregor Says He Wants an End to Qualcomm Royalties:
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=23623831&srchtxt=bloomberg

I’m a long time QCOM shareholder dating back to the 1996/2007 timeframe and have followed QCOM and the wireless industry very closely to this date.

As you know, BRCM is also a party along with Nokia and several other companies whose objective is also to disrupt (destroy) QCOM’s business model which is to a large extent based on royalty revenue from CDMA based handset sales. Although the major parties to these many actions against QCOM are by far the world’s current dominant companies in mobile wireless (NOK- #1 handsets and #2 infrastructure, TXN- #1 chipsets, ERIK- #1 infrastructure and #1 in WCDMA handsets), they hypocritically are attacking QCOM on the grounds that its business model is anti-competitive. However, the real reason for their many concerted attacks against QCOM’s business model is that it fosters more competition into the wireless market as 3G technologies (CDMA2000 / 3GSM/ UMTS/ WCDMA/ HSDPA) displace sales in their traditional GSM markets. In essence, these incumbents know they cannot compete in the 3G market against QCOM technology-wise, so they are using the courts and PR smear campaigns in attempts to destroy QCOM’s business.

QCOM’s business model has been consistent throughout its 20 plus year history, with by far the most extensive licensing program in the industry (over 160 companies) on what has always in the past been considered FRAND (Fair, Reasonable, and Non-Discriminatory) terms. In fact Nokia, although now it now publicly and deceitfully claims that it cannot renew its QCOM license because “things are much different now than when it originally signed its QCOM license in 1992", it actually renewed its QCOM license (FRANDly) in 2001 (only a few years prior to initiating its [also BRCM] 2005 EC complaint) after the WCDMA standard was approved and virtually everything 3G technology wise deployed today was know then.

QCOM’s business model uses the royalty revenue to fund its extensive R&D activities that have been essential in the development of all 3G technologies, and to support their handset and carrier partners in manufacturing, testing, and network deployments. I seriously doubt that anyone in the industry believes that the tremendous advancements in wireless communications could have been achieved without the essential contributions of Qualcomm.

To read JM’s continued comments on the two Bloomberg articles, log on with your subscriber password at
http://www.gildertech.com/.

To become a GILDER TELECOSM FORUM member, visit:
http://www.gildertech.com/

 

The Gilder Telecosm Forum

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Register today using your GTR password to gain entry into the web’s premier technology investment community: http://www.gildertech.com/


Friday Feature / Vaclav Klaus: Freedom, Not Climate, Is At Risk

 

We are living in strange times. One exceptionally warm winter is enough – irrespective of the fact that in the course of the 20th century the global temperature increased only by 0.6 per cent – for the environmentalists and their followers to suggest radical measures to do something about the weather, and to do it right now.

Ask President Klaus
 

Is climate change just propaganda? Vaclav Klaus will answer your questions in an online Q&A. Post a query now

In the past year, Al Gore’s so-called “documentary” film was shown in cinemas worldwide, Britain’s – more or less Tony Blair’s – Stern report was published, the fourth report of the United Nations’ Intergovernmental Panel on Climate Change was put together and the Group of Eight summit announced ambitions to do something about the weather. Rational and freedom-loving people have to respond. The dictates of political correctness are strict and only one permitted truth, not for the first time in human history, is imposed on us. Everything else is denounced.

The author Michael Crichton stated it clearly: “the greatest challenge facing mankind is the challenge of distinguishing reality from fantasy, truth from propaganda”. I feel the same way, because global warming hysteria has become a prime example of the truth versus propaganda problem. It requires courage to oppose the “established” truth, although a lot of people – including top-class scientists – see the issue of climate change entirely differently. They protest against the arrogance of those who advocate the global warming hypothesis and relate it to human activities.

As someone who lived under communism for most of his life, I feel obliged to say that I see the biggest threat to freedom, democracy, the market economy and prosperity now in ambitious environmentalism, not in communism. This ideology wants to replace the free and spontaneous evolution of mankind by a sort of central (now global) planning.

 

Read the Complete Article by Vaclav Klaus, President of the Czech Republic: http://www.ft.com/cms/s/9deb730a-19ca-11dc-99c5-000b5df10621.html

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View the availability for this beautiful lake-side retreat:

http://www.homeaway.com/vacation-rental/p165240

 

Friday Blogger Bonus / Karlgaard: Apocaholics Anonymous

Rich Karlgaard (6/14/07): Here is VC alpha dog John Doerr, of Kleiner Perkins Caufield and Byers, speaking at the TED Conference in March. Doerr's speech is on green tech.

So far, so good. Who opposes green tech? I’d love to see cars go twice as far on a gallon of gas without compromising crash-worthiness. I'd love to fly more than 1,000 nautical miles on an 81-gallon tank in my Cirrus airplane--800 miles is my limit now. Each time I go to Asia, I am amazed by hotel energy efficiency. All the lights go off when you take your key card out of the slot and depart the room. When you return to your room and reinsert your key in the slot, the lights awaken. Why can't we do that?

What's not good, and scary, and maybe even manipulative, is how Doerr begins his talk. Pushing all the global warming fear buttons, Doerr outdoes his friend Al Gore. Doerr says: "I don't think we're going to make it." He chokes up while saying this. There is no mistaking Doerr's words and emotions. He really believes Earth is headed for irredeemable climatic catastrophe.

I like and admire John Doerr. His record of VC success is indisputable. What's more, Doerr's startups--Compaq, Sun, Intuit, Amazon and Google--have brought the world a ton of good….

What are we to make of Doerr's "I don't think we're going to make it" comment? If I didn't know and respect Doerr, I would insert a sarcastic comment here. But because he's Doerr, and a nice guy as well, I will refrain.

Hear John Doerr’s speech:
http://www.ted.com/index.php/talks/view/id/128
 

Check Out Rich’s Digital Rules Blog:
http://blogs.forbes.com/digitalrules/

____________________________________

Readings /

 
The Weekly GTI
http://www.gtindex.com/

Rudy’s Shot
http://www.realclearpolitics.com/articles/2007/06/rudys_shot.html

Google To Use YouTube To Amass Video Database
http://www.siliconvalley.com/news/ci_6128593

Sprint Might Spin Off WiMax. Does This Mean Sprint Has Second Thoughts?
http://www.informationweek.com/blog/main/archives/2007/06/sprint_might_sp.html

 

Sony To Ship AppleTV Rival In July
http://www.eetimes.com/showArticle.jhtml?articleID=199904338

 

Healthy, Wealthy, and Wise

http://alwayson.goingon.com/permalink/post/14707

 

The Man Who Caught A Rising Tide
http://www.ft.com/cms/s/875f5b66-1370-11dc-9866-000b5df10621.html

 

Apple Steps Up Browser War

http://www.redherring.com/Article.aspx?a=22555&hed=Apple+Steps+up+Browser+War

 

Google Powers China’s Sina
http://www.redherring.com/Article.aspx?a=22563&hed=Google+Powers+China%e2%80%99s+Sina

 

What IT Customers Need To Know About Private Equity In Tech
http://www.informationweek.com/story/showArticle.jhtml?articleID=199902818

 

Ultra-Efficient Photovoltaics

http://www.technologyreview.com/Energy/18910/
__________________________________________

FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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