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Qualcomm in talks with Chinese players

February 27, 2003

Qualcomm said it was meeting with carriers China Telecom and China Netcom about adopting its 3G standard in next-generation mobile services.

China Telecom and China Netcom are expected to receive mobile licences late this year or in early 2004, allowing them to enter the lucrative business and compete with China Unicom and China Mobile.

"We've held informal discussions with them at various levels of officials," Irwin Jacobs, Qualcomm's chairman and chief executive, told reporters in response to a question.

"I think they will go ahead with CDMA," he said, referring to the CDMA standard which Qualcomm developed and added the talks were still in the early stages.

Analysts say that although China's next-generation mobile services may not be commercially available until 2004 at the earliest.

China Mobile, China's dominant mobile operator, would likely continue to offer a European-developed technology while China Unicom would stick with a Qualcomm-based standard when both roll out 3G services, they say.

China Telecom and China Netcom, as yet uncommitted to any technology, could adopt either of the two standards or support a homegrown standard called TD-SCDMA, possibly in tandem with one of the other technologies.

Qualcomm announced it would set up a technology joint venture with China Unicom, which aggressively promotes its own CDMA-based mobile service, to develop wireless data applications. This shows China Unicom has further committed itself to the CDMA2000 standard for 3G mobiles.

 


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