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Monday, March 19...

Nokia Files EU Patent Exhaustion Case against Qualcomm
Nokia filed complaints against Qualcomm in Germany and the Netherlands requesting declarations that Qualcomm's European patents are exhausted in respect to products placed on the European Union (EU) market with a Qualcomm license, in this instance chipsets supplied by Texas Instruments (TI). TI and Qualcomm are publicly known to have entered into a so-called Patent Portfolio License in 2000. If Nokia's claim succeeds, Qualcomm would be prevented from enforcing its patents in Europe in relation to Nokia handsets, incorporating the TI chipsets. The complaints were filed in the Regional Court of Mannheim, Germany, and in the Hague District Court, Netherlands; both courts have substantial experience in patent matters in the EU.

WSJ: Comcast in Talks with Microsoft on Portal Search Deal
The Wall Street Journal reported that Comcast is negotiating to use Microsoft's Internet search services on its broadband portal, a sign the cable company is not happy with the terms of its search deal with Google. Comcast, the country's largest cable operator, has been in discussions with Google about extending their relationship. Currently, Google provides search results when users of the Comcast.net portal enter queries into the search box on the site, but Comcast would like a larger share of the revenue generated by the arrangement. The negotiations are a sign of Comcast's efforts to leverage its presence in the high-speed access market, where it is second in number of subscribers to AT&T. Google shares advertising revenue from searches generated on Comcast.net, with Comcast's cut expected to be about $70 million USD this year. Comcast believes that should go up to at least $100 million. Comcast.net gets about 15 million visitors a month and is one of the biggest non-Google sources of search queries handled by Google. Because of this dissatisfaction, Comcast asked other Internet companies to submit proposals, and currently it is talking to Microsoft, whose MSN unit is one of the largest search engines after Google and Yahoo!. Google's current deal with Comcast expires at the end of 2007.

AT&T Sues NASCAR over Race Car Logo
AT&T filed suit against NASCAR, charging that the motor sports association violated its right to put its logo on a race car that is sponsored by its Cingular Wireless unit. AT&T said that NASCAR denied its plans to change the paint scheme and logo for the number 31 race car, driven by Jeff Burton. The lawsuit, filed in US District Court in Atlanta, accuses NASCAR of "attempting to force the company out of the sport," AT&T said in a statement. A spokesman for NASCAR said the racing association had not yet seen the suit. AT&T is in the middle of an effort to re-brand its cell phone unit as AT&T. The changes on the race car would have featured AT&T's globe logo, but Sprint Nextel is the key sponsor for the top racing circuit, branded as the Nextel Cup. Sprint's sponsorship contract has non-compete clauses, which NASCAR says prohibit AT&T from changing the number 31 car from the Cingular brand, which was grandfathered under the sponsorship agreement. AT&T says that the sponsorship of the car is one of the hallmarks of its marketing, and the denial will irreparably harm the company.

Saudi Regulator Eliminates Orascom and MTNL from Mobile License Bidding
The Saudi telecom regulator, the Communications and Information Technology Commission (CTIC), disqualified Egypt's Orascom and India's MTNL, two of nine groups bidding for a third mobile license in the Gulf's largest telecom market. The CITC will open financial proposals by seven consortiums that were qualified on Saturday, March 24th. These include South Africa's MTN; Kuwait's Mobile Telecommunications Co (MTC); Kingdom Holding Co, owned by billionaire Saudi Prince Alwaleed bin Talal, which is bidding with Turkcell; Dubai-based Oger Telecom, controlled by Lebanon's Hariri family; India's Reliance Communications with local partner Abdullah Adbulaziz Al-Rajhi; Samawat Consortium; and a consortium of Caribbean wireless company Digicel and Tawasul. Orascom and MTNL had been seen as major contenders. Bids are expected to surpass the 12.21 billion SARs paid by a consortium led by Etisalat for Mobily. Mobily, in which Etisalat holds a 35 percent stake, captured 34 percent of the mobile market within 18 months of launching in May 2005. Saudi Arabia, the world's largest oil exporter, is also selling a second fixed-line license this year to end the monopoly of Saudi Telecom (STC) as it liberalizes the market.

XO Posts Smaller Losses for Fourth Qtr and Fiscal 2006
XO Communications reported that fourth quarter 2006 revenue increased to $355.3 million USD from $351.3 million USD in the fourth quarter of 2005. Net loss for the quarter decreased to $27.6 million, or $0.17 loss per share, compared to a loss of $43.5 million, or $0.26 per share, in the 2005 quarter. For the full year, XO posted an slight decrease in revenue at $1.41 billion, compared to $1.43 billion in 2005. Net loss fell to $130.3 million, or $0.79 per share, from $146.5 million, or $0.88 per share, in 2005.

 .... Russ Drumheller, Faulkner Information Services

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