Bush administration upholds phone ban

The decision, announced after markets closed, was widely anticipated by investors and analysts. Qualcomm shares rose $1.01, or 2.5%, to $41.78 in regular trading, then surrendered 28 cents after hours. Broadcom's shares climbed 48 cents, or 1.5%, to close at $33.44, then added 31 cents after hours.

Qualcomm, based in San Diego, is the world's second-largest chip supplier for mobile phones after Texas Instruments, but earns much of its money from licensing fees on its patented technology. Broadcom, based in Irvine, is a newcomer to the cellphone business but has scored several legal victories against Qualcomm this year.

The impasse resembles a long-running patent dispute involving the maker of the BlackBerry e-mail device that ended in March 2006 when manufacturer Research In Motion agreed to pay a $612.5 million settlement to NTP. Uncertainty about the outcome had left BlackBerry customers wondering whether they would experiences brief outages or even a shutdown.

Qualcomm has warned of far-reaching harm to consumers who may be unable to buy the newest phones. It commissioned a study that estimated the cost to consumers and the wireless industry at between $4.3 billion and $21.1 billion, depending on the length of the ban. The study was done before Verizon Wireless ducked the ban.

Broadcom officials say the ban's impact would be limited.

Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...