More from China: BEIJING -(Dow Jones)- Qualcomm Inc. late Wednesday said it thinks the number of users of code division multiple access, or CDMA, wireless-communications technology will reach 20 million by the end of this year. "CDMA is the fastest-growing wireless technology," Jeffrey Balk, Qualcomm's vice president of marketing, told reporters in Beijing. In the U.S., there are twice as many CDMA subscribers than global satellite mobile, or GSM, subscribers, he added. However, debates over global standards for the next generation of mobile telephones are holding back what potentially could be even faster growth for the technology, Balk said. In particular, he added, government regulatory bodies are preventing fair competition by not letting consumers decide among the various systems available. "We want a level playing field for the technology rather than a government mandate of technology," Balk said. San Diego-based Qualcomm is a pioneer in the CDMA standard. Qualcomm and other proponents of the technology argue that CDMA systems will allow providers to make a smoother and more cost-effective transition to the next generation of wireless technology. CDMA technology, unlike GSM systems, will allow for high-speed data transmissions needed for the multimedia applications that will characterize the wireless standard of the future, they say. The most important market for wireless technology companies is Asia, which has become a battleground for GSM and CDMA advocates, Belk said. "Asia has a quenchless thirst for communication," Belk said. "Asia has had some difficulties but telecoms have continued to grow. We're a long way from saturating the market." In particular, China could soon be the No. 1 market for wireless technology and is already the main market for many mobile phone companies, he added. According to China's Ministry of Information Industry, mobile phone users reached 20.1 million at the end of August, an increase of 6.8 million from the year-earlier period. China ranks third behind the U.S. and Japan in the number of mobile phone users. "China could be a key pivotal point in Asia because of the quantity of people who use wireless here," Belk said. In China, however, the GSM standard is widely used. CDMA systems are only under trial operations in Beijing, Shanghai, Xian and Guangzhou. Qualcomm's handset sales in China "are not substantive" because of this limitation, said Belk. Qualcomm is trying to persuade Chinese authorities to allow greater use of the CDMA standard as a way of meeting the country's explosive demand for wireless services. CDMA systems have three to four times the capacity of GSM systems and 10 to 15 times that of analog systems, Belk said. Since 1990, the average growth rate of mobile phone users in China has been about 160%, according to government figures. China expects to have 50 million mobile phone users by the turn of the century. -By I-Chun Chen; 8610 6532-6652; ichen@ap.org |