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<Qualcomm's royalties from WCDMA, which has been touted as the more natural upgrade from GSM, could be watered-down by competing patent claims, analysts have said. But Jacobs maintained that Qualcomm's patent position is "very strong." >
Qualcomm Confident in China Reuters
7:00 a.m. Jun. 12, 2000 PDT
HONG KONG -- Qualcomm CEO Irwin Jacobs acknowledged Monday that he was disappointed by setbacks for his firm's CDMA wireless technology in China, but said he expects No. 2 carrier China Unicom will ultimately adopt Qualcomm's third-generation CDMA standard.
But timing for a code division multiple access (CDMA) rollout by China's No. 2 telecoms carrier is uncertain, Jacobs told Reuters in an interview in Hong Kong, where he was attending a CDMA mobile phone conference.
"I think the economic advantages of building CDMA sooner rather than later are very, very great. Otherwise, they're buying technology that's becoming old -- GSM technology."
Worldwide there are about 57 million CDMA subscribers, compared with more than 300 million using GSM.
Qualcomm is focusing on CDMA standards it calls CDMA2000. Competitors are developing a separate standard known as WCDMA. While Qualcomm maintains it will earn the same royalties no matter which standard is used, it is pushing its home-grown version as a more efficient and readily available platform.
Qualcomm's royalties from WCDMA, which has been touted as the more natural upgrade from GSM, could be watered-down by competing patent claims, analysts have said. But Jacobs maintained that Qualcomm's patent position is "very strong."
Jacobs said 3G CDMA technology will be deployed in South Korea later this year, followed by Japan and the United States.
He declined to speculate on when China Unicom might deploy Qualcomm's CDMA, but added, "hopefully a year from now in China we won't talk about 'when' but 'how much.'"
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