Key questions and answers from the third quarter fiscal 2008 earnings call conducted by Qualcomm on July 23, 2008.

Brian Modoff (Deutsche Bank): In terms of the agreement with Nokia, do you see this perhaps engaging you with Nokia in developing your 3G baseband?

Steven Altman: This dispute between Qualcomm and Nokia has been a significant impediment to working more closely together and I think that both companies are going to look for a number of opportunities to work together now that this dispute is behind us. We look forward to it.

Paul Jacobs: I had a very good discussion with Olli-Pekka, as we were concluding the agreement and we both agreed to get together quickly to talk about opportunities for the two companies to collaborate. It was a theme of our discussions throughout this whole process that there was a lot of respect between the two companies and we thought that we could do a lot to drive the industry together and I look forward to taking advantage of those opportunities.

Sanjay Jha: You would probably know that we already work with Nokia through an ODM relationship based on our chipset and so I expect that we will certainly enhance that. Given that a major obstacle has been removed in the path of our further engaging with them on the MTS chipset, we will engage in understanding if there is a possibility for the collaboration there.

Brian Modoff (Deutsche Bank): Given that you are developing CSM for LTE, could you see Nokia and NSN being engaged in working with you on that product and how do you see this impacting the agreement and potentially the scale that it delivers? How do you see this impacting some of your competitors in the market?

Sanjay Jha: Some of the folks who have had preferred positions in a number of different accounts will view this as potentially an increase in competitive pressure for them. Our skills certainly enables us to deliver better products, do more R&D and stay in technology leadership and we hope to be able to use all of that to convince more customers in the marketplace to use our chipsets.

Mike Walkley (Piper Jaffray): How should we think about your legal defense in absolute OpEx dollars potentially declining in fiscal 2009?

William Keitel: That 20 cents to 28 cents estimate is obviously primarily revenue but there is an element in there for reduced legal expense, directly related to what we have been spending in the past on the Nokia matter. It is too early at this point to get into a discussion on total business model defense costs for 2009 but certainly the Nokia settlement agreement is a good and significant positive step.

Tim Luke (Lehman Brothers): For the September quarter, you are guiding a midpoint of 10 cents; for the full year fiscal 2009 you are guiding a midpoint of 28 cents. Could you give us some sense of what is impacting the boost of September as opposed to the weighted position throughout the calendar year?

Bill Keitel: There is an upfront payment and that will be amortized. I expect the amortization to extend back in time to when payment stopped forward through to the end of 20, 22 and then in 2009 we are looking for an incremental re-assumption of royalty payments on top of the amortization. That gives you a good sense of why the increase in 2009 versus estimate for 2008. However, having said that, we are still at an early stage on working through this.

Tim Luke (Lehman Brothers): Could you talk about the implications for some of your other licensing deals with your other partners of this landmark settlement?

Steven Altman: We do not believe that our Nokia agreement impacts our most favorite provisions which I think is what you are getting at in our other license agreements. However, I would say that if we offer the package at the terms of the Nokia agreement to other licensees, I would be very happy if those other licensees would accept the package of Nokia's terms and conditions and provide us with the same value that Nokia will provide us under our new agreement.

Tim Luke (Lehman Brothers): The press release talks about an upfront payment from Nokia. Were you thinking that that will be something that you will be amortizing over the 15-year licensing deal and is there is some of that in the 20 cents to 28 cents guide?

Bill Keitel: Yes there is an upfront payment. It is a very significant payment and that payment we are determining how that will be converted into revenue and there will be an amortization schedule of that. We are still working through that hence the reason why we have given a fairly wide range to our earnings increment from the Nokia settlement agreement; but yes there will be an amortization of the upfront payments.

Tal Liani (Merrill Lynch): In the past you gave guidance of 25 cents to 30 cents for Nokia contribution and legal expenses were guided in the neighborhood of $300 million. If I am assume that you have reduced your legal expenses by $200 million of the $300 million, it is 10 cents plus for Nokia in 2009. If I take the high end of the range of 30 cents and your mid point for 2009 being 24 cents, is the discount around 40% to 50% to Nokia versus the prior expectations?

Bill Keitel: We are limited to what we can say given the terms of the agreement with Nokia and we certainly do not want to press on the terms that we do have. However, I would just add that my initial estimate on the legal expense increment of that number we gave for 2009 is less than what your assumption was. The number that we have said is more than $300 million in terms of total business defense for fiscal 2008. However, we also said that the outside legal fees that we have been paying, although it is the majority of it, we have indicated its more closer to the $200 million range and then the balance of that total business defense is other matters and in other areas including offsets to revenue.
In that $200 million range of outside legal fees, you have got monies we have been spending on the Nokia, trying to wrestle that one down. There has also been the Broadcom matter. You have got the EC and so there are a number of areas in that $200 million or so expense and just a portion of that has been Nokia.

Tim Long (Banc of America): A very strong quarter for Chip ASP’s, yet we are guiding the overall phone ASP in the June quarter to be down 5%. Could you comment on that?

Bill Keitel: The key item in that differential is to do with the time we ship a chip to the time a subscriber buys the phone. That is our estimated inventory channel that we try and track. It is not our inventory. It is others’ inventories. However, we indicated, we are forecasting that there is a bleed in that total inventory channel in the September quarter. That inventory channel will reduce and we think that one of the main regions that is driving some inventories is in the developing regions.
We expect ASPs of low end devices that cross the hurdle of revenue recognition for our royalty business to be a little bit different in terms of what is going through that channel relative to the MSMs were shipping is at the start of that channel cycle.

Dona Jackson (Goldman Sachs): In terms of the 4G aspect of the agreement, can you update on what percentage of your 3G licensee at this point have also signed on for your OFDM technologies and how you think that might change or accelerate based on this agreement?