Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ruffian who wrote (65808)	2/2/2000 1:25:00 PM
From: LBstocks	Respond to of 152472

Chinese Phone Firm, Qualcomm Make Deal U.S. Firm Licenses Wireless Technology By John Pomfret Washington Post Foreign Service Wednesday, February 2, 2000; Page E10 BEIJING, Feb. 1?Qualcomm Inc. has agreed to a deal with a Chinese state-owned telephone company that will allow Chinese manufacturers to make mobile phones using Qualcomm technology, officials here said today. The agreement should place China Unicom, the country's second-biggest telephone carrier, in a position to compete directly with China's telecommunications giant, China Telecom, which has 90 percent of the country's fast-growing mobile phone market, presently estimated at 40 million users. China Unicom will use Qualcomm's code-division multiple access technology, known as CDMA, which competes with the European mobile phone standard used by China Telecom. The Qualcomm deal also could result in more earnings for the People's Liberation Army, which remains in the telecommunications field despite a government order banning it from doing business. One company, Great Wall Communications, which is partially owned by the PLA's General Staff Department, has been operating a CDMA system in four cities. Qualcomm signed a $300 million deal with that firm in 1997 for wireless headsets. The PLA could also receive revenue in another way. Western sources have said the bandwidth used for CDMA is still owned by China's military. "They could make millions simply from the rent," one Western telecommunications expert said. China said in March that it will allow CDMA technology to be used nationwide. At the time, the decision was seen as part of an elaborate series of trade-offs with Washington over China's attempts to join the World Trade Organization. Since then, China Unicom, known officially as China United Telecommunications Corp., has tried to build a CDMA network in an effort to compete with China Telecom. But up until now, China Telecom, whose executives have powerful sway inside China's government, has been unable to thwart China Unicom's plans. "Is competition coming to China's telecommunications industry?" asked a Western European diplomat. "Well, not really. It's still David versus Goliath. But it's better than before." ¸ Copyright 2000 The Washington Post Company