Interview with Qualcomm's Christine Trimble:
The CDMA saga continues: Qualcomm ready
to play
Paul Mooney in Hong Kong
ChinaOnline
(Editor?s note: The following is taken from an e-mail interview
with Christine Trimble, senior manager, Qualcomm
Communications)
ChinaOnline: Has China Unicom informed Qualcomm that it
won't be installing the narrow-band code division multiplex
access (CDMA) technology as previously agreed in the
February agreement? Why the conflicting statements last
week?
Christine Trimble: Qualcomm is engaged in discussion with
China Unicom and manufacturers regarding the deployment of
CDMA in China. We're encouraged by these discussions and
are hopeful that CDMA will be deployed soon. We are
working with several Chinese manufacturers to position them
for early entry into CDMA2000 (also referred to as 1x)
infrastructure and handset manufacturing. The agreement
signed in February with China Unicom covers CDMAOne
(existing
CDMA) and CDMA2000.
COL: Is it correct to say that the current narrow-band CDMA
is not upgradeable to the wide band and that China would
have to completely change systems again within two to three
years when CDMA 2000 comes out?
Trimble: No. Existing CDMAOne operators can easily
upgrade their current systems to support CDMA2000.
CDMA2000 can be deployed by adding channel cards to
existing CDMAOne base stations. CDMA2000 offers forward
and backward compatibility with CDMAOne. CDMA2000
handsets will be backward compatible with CDMAOne
networks, and CDMAOne handsets will be forward compatible
on CDMA2000 networks. Qualcomm believes that
CDMA2000 will be the world's first commercial
third-generation technology with initial deployments to begin
before the end of the year and commercial operations by all
CDMAOne operators worldwide during 2001.
Qualcomm is now supplying CDMA2000 3G chip samples
and software to licensed CDMA infrastructure and subscriber
manufacturers worldwide, and trials and first calls are being
conducted.
Several CDMAOne operators have publicly stated their intent
to support CDMA2000 by next year (i.e., Sprint PCS,
Verizon, SK Telecom). The CDMA Development Group's Web
site, www.cdg.org, is a good source for updates on
CDMA2000 progress.
COL: If you own the bulk of CDMA2000 technology, does it
matter if China does not use the current technology? China is
saying Qualcomm will be a winner down the road when
CDMA2000 is put into operation. What's your reaction to this?
Trimble: The agreement with China Unicom covers
CDMAOne and CDMA2000. As part of Qualcomm's licensing
agreements, licensees of CDMAOne will pay the same
royalty for 3G systems, including W-CDMA and CDMA2000.
Qualcomm has more than 75 licensees for CDMA.
Over one dozen of these companies have already extended
their licenses for 3G applications, including W-CDMA and
CDMA2000. We're pleased that the third generation of
wireless communications is based on CDMA. Qualcomm has
a substantial portfolio of CDMA patents, including an
extensive number of "essential" patents that are necessary
for the deployment of any commercially viable current- and
future-generation CDMA system independent of bandwidth.
COL: If the Chinese are now saying the narrow-band CDMA is
not a feasible investment as it will soon be out of date, why
did they sign the royalty agreement with you earlier this year?
Telecoms analysts were critical of the deal back then, and I
find it difficult to believe that the Chinese did not know then
what they know now.
Trimble: The agreement with China Unicom covers
CDMAOne and CDMA2000. As explained above, existing
CDMAOne operators can easily upgrade their current
systems to support CDMA2000, which we expect to be the
world's first commercial third-generation technology. Because
of its high-spectral efficiency and limited bandwidth
requirement, both CDMAOne and non-CDMAOne operators
can easily transition to CDMA2000, achieving increased
network capacity, higher quality and the ability to offer
high-speed wireless Internet access while supporting existing
and new users.
COL: Qualcomm apparently lobbied hard for passage of
permanent normal trade relations (PNTR) for China. Do you
think China used Qualcomm to get World Trade Organization
accession and PNTR status in the United States.?
Trimble: It's not clear how external political factors with
PNTR and WTO may have impacted the deployment of
CDMA. We believe that PNTR status sets a positive tone and
is reflective of the new atmosphere of openness and
increased U.S./China cooperation.
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