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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 9:30 AM EST

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From: subcontinent7/4/2006 4:29:55 PM
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Reliance wants Qualcomm to waive royalties

PTI [ TUESDAY, JULY 04, 2006 09:40:03 PM]

MUMBAI: Reliance Communication has asked US-based Qualcomm to completely waive the royalties either on handsets or networks for faster growth of CDMA-based telecom services in rural India.

According to sources, this was clearly communicated by Anil Ambani during a meeting between Reliance and Qualcomm last week.

Reliance wanted Qualcomm to use different criteria for definition of urban, semi-urban and rural areas to finalise locations where the high rolyalties on the network equipment and handsets should be waived.

According to estimates, the move would have resulted in 10 per cent lower capex for the operators thus being in a position to meet the tariff structure.

For consumers, it would have resulted in CDMA handsets being available at 12-15 per cent lower than current price, sources said.
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