Reuters Interview with IMJ
Look at the comments about Spinco at the bottom. IPO not sure.
Thu Oct 12 11:22:43 2000
(REUTERS) INTERVIEW-Qualcomm CEO sees China decision soon
INTERVIEW-Qualcomm CEO sees China decision soon
By Radek Narovec
PRAGUE, Oct 12 (Reuters) - Qualcomm Inc., a U.S. digital wireless technology provider, said on
Thursday it expects China's second biggest telecoms group China Unicom to opt by the end of 2000
to use its technology to develop a mobile phone network.
Qualcomm's Chairman and Chief Executive Officer Irwin Jacobs told Reuters in an interviewthat if
the Chinese company chooses
its CDMA technology Qualcomm's sales would soar for at least the next two years.
Jacobs declined to elaborate on potential revenue flows from the Chinese market but said that if
everything goes smoothly Qualcomm sales should be significantly boosted in 2001 and 2002.
"If things do appear to go ahead that will probably cause sales revisions in 2001 and 2002," he said.
Jacobs said he met with top Chinese officials on Tuesday and Wednesday in an attempt to speed up
the implementation of CDMA
technology by China Unicom Ltd <0762.HK> , which currently uses the European GSM wireless
standard.
Whether fast-growing China Unicom adopts current-generation CDMA technology developed by
Qualcomm Inc is a multibillion
dollar question for Qualcomm, Lucent Technologies Inc and other makers of CDMA-based
hardware and software.
HOME GROWN TECHNOLOGY
But home grown technology developed by Chinese state-owned companies could also be adopted,
taking business from Qualcomm
and other global telecoms companies.
China, the world's second biggest mobile phone market, has only about 200,000 subscribers on
CDMA (Code Division Multiple
Access) networks compared to 60 million users on GSM networks.
"I would hope that indeed there will be further motion very quickly to establish a major CDMA
network in China," Jacobs said, speaking on the fringes of an information technology conference in
Prague, after arriving directly from China.
"Everything is in significant progress forward for Unicom on the move ahead with the CDMA
network and Chinese manufacturers to be positioned to provide some of the equipment and
infrastructure."
Qualcomm would not supply directly to Unicom, but instead would cooperate with Unicom's local
business partners.
"There will be contracts signed with individual manufacturers and suppliers for Unicom. Hopefully
something will be occuring, on the optimistic side I would say, before the end of the year," he added.
Qualcomm shares have lost ground in recent days, following the sharp downturn on the tech-rich
Nasdaq index, closing at $70 1/2 on Wednesday.
The stock hit an all time high in January, when it traded at almost $180, but delays in Chinese
activities have helped send the shares into a tailspin.
Jacobs also said Qualcomm could tap the markets for raising funds by the end of this year despite
having enough cash for its key business.
"We are spinning off our semiconductor business. As a part of the spinoff we may do a small IPO.
We are looking whether we do that... We'll make the decision shortly," he added.
((Prague Newsroom, +420-2-2419-0477, fax +420-2-2422-9935,
prague.newsroom@reuters.com)) REUTERS |
