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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 165.24

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Jan 13 3:59 PM EST

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To: John Biddle who wrote (29799)	12/6/2002 8:59:10 PM
From: John Biddle	Read Replies (2) of 197194

Datang in dispute with Qualcomm over 3G patent December 6, 2002 3gnewsroom.com Datang, wanting to waive royalties for its TD-SCDMA standard, has rejected Qualcomm's claim to intellectual property of the technology. Zhou Huan, chairman of Datang, said TD-SCDMA uses a lot of core IPR that was actually developed by the Chinese themselves and does not use Qualcomm technology. The statement could start a legal battle that would determine whether Chinese companies would be obligated to pay royalty fees for the 3G technology. Siemens and Datang, developers of TD-SCDMA, says the technology is more spectrum efficient than its two rival technologies, WCDMA and cdma2000. They also say it is at least 20% cheaper to implement and has higher data transfer rates. The Chinese government has allocated favourable bandwidth for TD-SCDMA, showing its strong support and optimism for the home grown technology. Speculations have even hinted that the Chinese government would force future 3G operators to adopt the new standard, but was later dismissed by government officials. To date, Qualcomm says it has licensed TD-SCDMA-based technology to more than 40 companies. None have been Chinese firms. Even though operators have not said they would deploy TD-SCDMA networks, some equipment manufactures have said they would support TD-SCDMA incase the technology is chosen for commercial use. Datang urge the Chinese government to throw its weight behind the TD-SCDMA standard and avoid competing foreign technologies. Mr Zhou said Beijing should follow Europe's example in developing its GSM standard and champion a home-grown version of the high-speed wireless technology that is expected to dominate future mobile telephony. "As the United States government supports the CDMA standard and Europe supports GSM, our government should back TD-SCDMA," Mr Zhou said.

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