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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (65515)	1/31/2000 5:01:00 PM
From: LBstocks	Read Replies (2) \| Respond to of 152472

Qualcomm in Talks on China Wireless Deal By Michael Fitzpatrick Monday January 31 4:31 PM ET LOS ANGELES (Reuters) - Qualcomm Inc. (NasdaqNM:QCOM - news) said on Monday that it was in talks to supply wireless technology to China, a move that would give the high-flying mobile telephone technology company access to a potentially huge market. Qualcomm stock jumped nearly 15 percent in heavy trading on Monday after a sharp sell-off last week that saw the stock lose about a third of its value. The stock jumped 16-7/16 to 127 on Monday on Nasdaq, where it was the most active issue, with more than 39 million shares changing hands. San Diego-based Qualcomm, which is the leader in code division multiple access (CDMA) technology that is the foundation of new mobile phone networks, said it was in talks with China's second largest telephone company, China United Telecommunications Corp. ``We are in negotiations, and good progress has been made,' Qualcomm spokeswoman Christine Trimble said. Qualcomm would not comment further on the talks. The stock rose more than twentyfold last year as one of the best-performing issues on Nasdaq and split four-for-one at the end of 1999. Analysts also said the rise also was due to buying after a sell-off. Qualcomm closed at a record 179-5/16 on Jan. 3, then slid the rest of the month. The Wall Street Journal reported Monday that meetings between Qualcomm executives and officials of China United began on Thursday and stretched into the weekend. The talks pitted Qualcomm's CDMA technology, widely used in the United States, against the European global system for mobile communications (GSM) wireless technology that is the nearly exclusive technology in China. Last year, Chinese negotiators agreed to launch a CDMA mobile network, which would create more business opportunities for U.S. companies in the world's most populous country. CDMA is a ``spread spectrum' technology that takes information contained in a particular signal and spreads it over a much greater bandwidth, allowing telecommunications firms in China to carry more phone traffic than the GSM standard. A Qualcomm deal with China United was only a matter of time, said Brian Modoff, an analyst with Deutsche Banc Alex. Brown. ``We've known that it's been on the radar screen for some time now,' Modoff said. ``The issue is when it's going to happen.' The deal would be an advantage for China United since it would give them fast-growing technology, said Mark Roberts, an analyst with First Union Securities. The talks ``are more to do with China getting nervous that they are getting technologically behind the Japanese and Koreans,' Roberts said. ``It's strategically important for the Chinese government -- for China in general -- because CDMA is rapidly becoming the dominant technology in Asia, and we believe that the Chinese fear that they will be falling behind technologically if they don't move forward,' Roberts said. Such a deal had the potential to sharply increase earnings expectations for Qualcomm, Roberts said, adding that Qualcomm had been in negotiations with various parties in China for several years. ``The nationwide buildout of CDMA in China is not included in anybody's (earnings) estimates,' he said. dailynews.yahoo.com

To: Ruffian who wrote (65515)	1/31/2000 7:06:00 PM
From: LBstocks	Read Replies (2) \| Respond to of 152472

AWSJ: China Unicom, Qualcomm Settle On Preliminary Deal Dow Jones News Service ~ January 31, 2000 ~ 6:00 pm EST By Matt Forney Staff Reporter BEIJING - Qualcomm Inc. has reached an agreement with China United Telecommunications Corp. to license and deploy Qualcomm's technology in China's fast-growing mobile communications market. The deal was struck during negotiations over the weekend, but neither Qualcom nor China Unicom has been willing to confirm the agreement, which is still preliminary and must be approved by several Chinese agencies in a process that could take several weeks. If accepted, the agreement would give China Unicom a mobile-phone technology called CDMA, or code-division multiple access, a standard Qualcomm developed that has become the dominant in the U.S. China Unicom will be able to use the technology as a new selling point in its battle to lure customers away from China's main operator of mobile communications networks, China Telecom. Around 90% of China's 43 million mobile-phone users subscribe to China Telecom's service, which uses the GSM, or Global System for Mobile communications, wireless technology that is prevalent in Europe. "Now we move to the approval process," says a participant in the negotiations. "There are almost no issues left - we agreed, but there is no contract yet," the negotiator added. The deal must be approved by the State Development Planning Commission and the Ministry of Information Industry, among others. The deal lets China Unicom license a technology called cdmaOne from Qualcomm, the San Diego-based company that holds many patents for mobile-phone technology. Qualcomm will collect a royalty fee for sales of equipment using its patents, such as wireless handsets and ground stations. The deal could affect the development of mobile-phone standards in Asia, where a large market such as China may influence regional industry trends. China Unicom has licensed the so-called second-generation cdmaOne. Many companies are furiously working on third generation wireless technology, which will enable users to download video and other products to handheld devices, such as mobile phones. That next generation is still a few years away, but already companies are vying to set the industry standard. One option - called wide band CDMA - is prevalent in Europe. Qualcomm holds relatively few patents for this type of CDMA technology. Another option Qulacom is developing is called CDMA 2000. With its latest deal in China, Qualcomm stands a better chance in the future of convincing China Unicom to upgrade to CDMA 2000. (END) DOW JONES NEWS 01-31-00 06:00 PM