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To: stockman_scott who wrote (7601)3/15/2000 2:35:00 PM
From: techguerrilla  Respond to of 35685
 
Caterpillar, Scott . . Great Buy Op <gg> <eom>



To: stockman_scott who wrote (7601)3/15/2000 2:35:00 PM
From: Sully-  Respond to of 35685
 
China's Zhu Denies Talk It Will Suspend CDMA Network (Update1)
By Peter Harmsen

(Updates with Zhu comments, background.)

Beijing, March 15 (Bloomberg) -- Chinese Premier Zhu Rongji
said it's ``not true' that China has suspended or stopped the construction of a new digital mobile telephone network based on the code division multiple access standard.
``What they are saying is not true and there has never been
anything like that,' Zhu told reporters. He was responding to a question about reports last month that a new CDMA network being built by Qualcomm Inc. had been delayed.

Qualcomm is counting on China to boost revenue and profits
for its CDMA technology, the world's fastest-growing mobile-phone standard. China's number of cellular-phone users is forecast to increase 63 percent this year to 70 million.

CDMA-based mobile networks still have to carve out a position against GSM, the global system for mobile communications, a European standard that is dominant in China.

The Ministry of Information Industry previously denied that
it had ordered a delay in the establishment of a CDMA network, although both foreign and Chinese companies have indicated the process has been stalled.

Beijing Zhongguancun Science and Development Co., which plans to invest in a new cell phone operator that will be based on the CDMA standard, said today it's still waiting for the final word on official policies regarding CDMA.

Remarks by Zhu today suggest CDMA may have been thrown into
limbo because of poor coordination on the part of China United Telecommunications, the country's No. 2 phone company, which is responsible for the implementation of CDMA technology in China.

Coordination

``China Unicom may not have done a very good job in getting
mutual coordination and communication with the other agencies concerned, namely the Ministry of Information Industry and the State Development Planning Commission,' Zhu said. ``So now the people are doing their job to go through all the necessary remaining formalities and procedures.'

The Chinese armed forces were previously involved in
establishing CDMA networks in pilot projects in four selected cities. The third mobile phone operator that is under preparation may also use cell phone networks run by the armed forces.

Those are functions that may clash with government policies,
announced in mid-1998, to get the army to cut its business ties. ``We are coordinating all the work concerning how CDMA
cooperation in China should further proceed and how CDMA systems can be better used to satisfy all the requirements and demands on the part of the Chinese army,' Zhu said. ``This question will be resolved very soon.'

quote.bloomberg.com