More Q!, China and Corporate and State Relationships
China began setting the terms of the bargain with Q! several months ago when it sent up its balloon regarding its homegrown version of CDMA (posts of, perhaps, early May) for inclusion in the ITU discussions on convergence and harmonization. MOT and E may indeed be out as vendors, preferred or otherwise, and good riddance. But China, all as appropriate for a sovereign state able to exercise and deploy its power, has a modus vivendi when it comes to the terms on which it will accept, and pay for, the introduction by a foreign corporation of its technology. I think that the thread is well familiar with the payment to be made by the foreign corporation for the privilege of licensing and/or manufacturing its technology to and in China.
The key question, in my mind, then, is what concessions China will gain in its negotiation with Q! as to:
--royalty rates and the cost basis upon which they are calculated;
--technology transfer restrictions or liberties on Unicom or other domestic parties that may be made party to the arrangements; and
--treatment of essential patents vs. non-essential patents--will China be held to the Sulpizio standard (expressed during the last CC)?
JohnG, you wrote: Why not pick QCOM, who has no vested interest in particular CDMA infrastructure productes, and who has faced down the giant telecoms and scored a win for truth and science over lies and politics. I think we are on the same page, but maybe not via the same route.
In addition to the plausible inference of misleading statements by E, China may also be witnessing what is happening with DoCoMo on its doorstep. And no doubt, Bernie (ours, not Worldcom's), has merited respect in China. But as to being a matter of truth and science over lies and politics, only to a measured degree. China is all business.
Btw, the Xinhua release would seem to put to rest, at least for now, any question as to the accuracy of the reportage in that seminal WSJ piece on the crumbling of the monopoly power of the Minister of Information, Wu Jichuan (I think, Brian correct me if I have it mixed up).
Regards. Steven |
