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

To: Ruffian who wrote (65764)	2/1/2000 8:23:00 PM
From: Kayaker	Read Replies (2) \| Respond to of 152472

Qualcomm-China deal latest in technology battle By Duncan Martell PALO ALTO, Calif. (Reuters) - Qualcomm Inc.'s deal announced on Tuesday with China's second-biggest state-owned telecommunications company was its latest victory in pushing its mobile phone technology toward being a global standard. But the war, analysts said, is far from over. Already, there are six standards for wireless service in use today, including market share leader Global System for Mobile Communications, or GSM, and Code Division Multiple Access, or CDMA, which ranks No. 2 in market share and where Qualcomm (QCOM.O) is the leader within CDMA. While CDMA is widely used in the United States and is growing quickly in South America and Canada, GSM dominates in Europe and is driven by mobile powerhouses Ericsson (LMEb.ST) and Nokia (NOKSa.HE). But in a country where only about 3 percent of China's 1.2 billion inhabitants have wireless phones, the growth that low figure implies just in that country is staggering. ``It's too early to declare a winner in the standards battle but Qualcomm is definitely poised to be a big winner,' said Jeff Kagan, an independent telecommunications industry analyst. ``If it (CDMA) dominates, they're clearly a winner but even if it's part of a number of choices, Qualcomm is still a winner.' BOON FOR CDMA Sprint and Bell Atlantic have embraced CDMA while at least two phone makers are expected by the end of the year to roll out gizmos that run on GSM networks and those build using another digital standard, Time Division Multiple Access, or TDMA, analysts said. But nonetheless, the much-anticipated deal with China United Telecommunications Corp. is a boon to San Diego-based Qualcomm's efforts in propagating CDMA across the globe. The accord calls for the licensing of Qualcomm's intellectual property for the manufacture and sale of CDMA wireless equipment by Chinese manufacturers. Financial terms haven't been disclosed, but royalty payments, expected to come in 2001, are lucrative.