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Technology Stocks : QUALCOMM-The Wireless Wonder in 1999 -- Ignore unavailable to you. Want to Upgrade?

To: GO*QCOM who wrote (292)	6/1/2000 4:25:00 AM
From: GO*QCOM	Respond to of 343

Conflicting signals on CDMA in China (UPDATE: Recasts with comments by China Unicom spokesman) BEIJING, June 1 (Reuters) - Conflicting signals emerged on Thursday about the fate of Qualcomm Inc's (NasdaqNM:QCOM - news) CDMA cellular phone technology in China, one of the world's biggest markets. The China Daily newspaper, citing an unnamed spokesman at China Unicom, the number two state mobile operator, reported that Unicom's plans to build a CDMA (code division multiple access) network were ``still on track''. ``We have not received any official document to call off the construction and deployment of a CDMA network in China,'' the paper quoted the spokesman as saying. That statement contradicted comments this week by Unicom officials in Hong Kong, who said plans to use current generation CDMA technology developed by San Diego-based Qualcomm had been shelved. The officials were speaking to analysts in Hong Kong at the start of a roadshow for a stock market listing that could reach $5.26 billion. Unicom spokesman Hu Qingdong told Reuters he had not seen the China Daily report, but statements by Unicom officials to investors ahead of the initial public offering should be taken as accurate. ``The word of company heads who are on the roadshow should be considered more accurate,'' Hu said. Fears over the future of CDMA in China sent Qualcomm shares plummeting more than 13 percent on Wednesday, down 10 points to 66- on Nasdaq, erasing most of the previous day's gains. Volume was nearly 55 million shares, making Qualcomm the most active stock on the exchange. Unicom in February signed a royalty agreement with Qualcomm to use the code division multiple access standard. But many analysts believe it makes little sense for Unicom to build networks using current generation CDMA to compete with its existing GSM (global system for mobile communications) network. They argue the company would be better off waiting for next generation CDMA, which would have multimedia capacity. E-mail this story - View most popular -------------------------------------------------------------------------------- More Quotes and News: Qualcomm Inc (NasdaqNM:QCOM - news) Related News Categories: IPOs, US Market News -------------------------------------------------------------------------------- Help

To: GO*QCOM who wrote (292)	6/1/2000 4:29:00 AM
From: GO*QCOM	Read Replies (2) \| Respond to of 343

China Unicom Says It Hasn't Scrapped CDMA Plans - Report 05/31 10:31P (DJ) Story 6933 (QCOM) Unicom's commitment to CDMA has come under increasing doubt since it reached a licensing deal in February with California-based Qualcomm Corp. (QCOM), which holds many CDMA patents. Unicom said then it planned a nationwide CDMA network with capacity for 10 million users by year end. But authorities quickly halted the CDMA rollout, and Unicom has yet to move ahead with the plans. Unicom also made scant mention of CDMA plans in a prospectus for a $4 billion-$5 billion global share offering by its unit, China Unicom Ltd., later this month. A Wall Street Journal article last week quoted an investment banker close to Unicom underwriters saying the company "does not have any plans to build CDMA." Renewed worries that the CDMA deal has foundered have jarred Qualcomm's share prices, which fell 13% to 66 3/8 in New York Wednesday after soaring almost 16% the day before. Monday's report cited the Unicom spokesman as saying the CDMA plan "is still on track," but said he declined to add further details. Unicom officials couldn't immediately be reached for comment. The China Daily article also quoted an official at the Ministry of Information Industry, China's telecoms regulator, hinting the government is now pushing development of a CDMA network. "The biggest support from the government is to solely authorize China Unicom to construct and operate the CDMA network," the report quoted MII Vice Minister Zhang Cunjiang as saying last week.