Qualcomm Lauds China Unicom Clarification on Technology Choice
Hong Kong, June 13 (Bloomberg) -- Qualcomm Inc., the San Diego-based developer of one of the world's leading wireless phone networks, is pleased that China has clarified ambiguity by stating it will test the company's new generation technology, said Irwin Jacobs, Qualcomm chairman and chief executive.
Conflicting signals about which technology China would adopt caused Qualcomm shares to drop almost 54 percent this year.
China United Telecommunications Corp., or Unicom, said yesterday it will test Qualcomm's third-generation cell-phone network technology, known as code division multiple access, or CDMA, sometime next year in selected cities.
If proven successful, the technology may eventually be adopted by subsidiary China Unicom Ltd., the country's soon-to-be- listed phone company.
``I am pleased with the announcement,'' said Jacobs. ``The stock market has been buffeted because there have been conflicting statements.''
The company's shares fell 26 percent in the last week of May after media and analysts, citing a variety of sources, said China's second-biggest phone company wouldn't use Qualcomm technology.
Jacobs said confusion was caused because two different teams of people at Unicom were speaking independently.
The experience hasn't soured Qualcomm on the mainland market, Jabobs said.
``They now are preparing to join the WTO,'' Jacobs said of the Chinese. ``So now you have another set of rules you have to play by. And it's changing very quickly. We look forward to working with China Unicom.''
Jacobs said the company may take an equity stake in a mobile phone operator, such as China Unicom, if that move would assist the advancement of CDMA technology. No formal discussions have been held with China Unicom, he said.
Jun/13/2000 5:53 ET |
