What an idiot...
Anil rejects Qualcomm`s discount proposal
Rajesh S Kurup / Mumbai July 03, 2006
Reliance Communications Chairman Anil Ambani has refused to accept the volume-based discount proposal that was pitched by the top brass of US-based Qualcomm, which has led to the failure of talks between the two companies.
Ambani, who had an eight-hour-long meeting with Qualcomm CEO Paul Jacobs, had sought a reduction in handset prices by reducing royalty levies.
"Ambani was open only to a handset price reduction as against the volume-led discount on cost elements, other than royalty, that was being offered by the CDMA technology licensor. He was not ready to settle for anything other than a reduction in handset prices," a source close to the development told Business Standard today.
Reliance Communications team had termed the volume discount structure opaque and not in the interests of consumers.
The Qualcomm team is also believed to have made an offer to share marketing, advertising and promotional costs incurred by Reliance Communications and other CDMA service providers who promote its technology.
Market sources say that 7 per cent royalty is being levied on CDMA handsets sold in the Indian market, while that in China and Korea was around 2 per cent and zero per cent in the United States.
tinyurl.com
-----------------
no infra division, no handset division, can't drop royalties without global repercussions.... only volume chipset pricing, cash and know-how in the arsenal.
India requires some of all that. At some point, though, it's not worth it.
Not prone to seeing conspiracies, but there must be collusive strategies here with other anti-Q elements, most obviously the Indian gov't and their GSM sponsored spectrum BS. There's bound to be trouble also with the Nokia jv for TD-SCDMA/WCDMA in China. tmcnet.com |
