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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (6008)	1/31/2000 11:32:00 PM
From: straight life	Respond to of 13582

Total Telecom's take: Qualcomm Close To China CDMA Deal By a staff reporter 31 January 2000 China United Telecoms Corp. (China Unicom) is close to reaching an agreement with Qualcomm Inc. for a reduced license fee for using the U.S. company's CDMA technology, the Wall Street Journal reported today. Officials from both companies have met over the weekend, the newspaper said. Louis Lupin, senior vice president of Qualcomm, told the Wall Street Journal: "Good progress has been made in our negotiations." China Unicom is eager to arrange a discount on the 5%-10% of sales which Qualcomm, which makes the chips used in CDMA phones, usually claims. The company had originally offered Chinese manufacturers a reduction but went back on the deal after selling its manufacturing unit to Ericsson AB in March 1999. China Unicom this month rolled out the first phase of its nation-wide CDMA network, intended to rival the GSM network of dominant operator, China Telecom Ltd. The Chinese government initially banned CDMA roll-out in February 1999, saying that uniform GSM would speed the transition to third generation, but later changed its mind. Unicom was offered the position of sole CDMA operator in June, but the decision was overturned by the State Council the next month. Great Wall Telecom, owned by the People's Liberation Army, has been trialling CDMA networks in four Chinese cities. The negotiations with Qualcomm were initially conducted through the ministry of information industry, which pulled back in December. The result of the negotiations impinges on the rest of Asia, as the technology which dominates in China is likely to have influence elsewhere, and a deal struck with Qualcomm will lead to demands for similar sanctions from other countries. China Unicom plans to list its shares in Hong Kong and the U.S. in the first quarter of this year.