To: Clappy who wrote (21500 ) 6/5/2000 7:27:00 AM From: Dealer Read Replies (1) | Respond to of 35685
QCOM--China---What else??...tried of it aren't you? dealer WSJ(6/5): Unicom Accepts US Standard; Earns WTO Entry 06/04/2000 Dow Jones News Services (Copyright ¸ 2000 Dow Jones & Company, Inc.) By Matt Forney Staff Reporter of The Wall Street Journal BEIJING -- China's No. 2 phone company, China United Telecommunications Corp., or Unicom, confirmed that it won't use for at least three years a mobile-phone technology designed by Qualcomm Corp. of the U.S. -- a decision that could reverberate from Silicon Valley to Washington. China's promise to open its markets to Qualcomm's current generation of cell-phone technology was key to it earning U.S. support to join the World Trade Organization, the group based in Geneva that sets global trade rules. Last year, Premier Zhu Rongji personally assured Commerce Secretary William Daley that China would open its markets to Qualcomm's CDMA technology, according to people in the room at the time, a decision that was supposed to result in millions of Chinese subscribers using Qualcomm technology by the end of this year. But when the U.S. stalled China's entry into WTO last year and later bombed China's embassy in Yugoslavia, Beijing's enthusiasm for Qualcomm's technology faded. As China's WTO bid picked up steam last autumn and was endorsed by the U.S. in November, Qualcomm's fortunes in China rose, culminating when it signed a "framework" agreement with Unicom in February. But Qualcomm then ran into problems with China over how much of its technology would be made locally. At the same time, some officials in China argued that it would be wasteful for the country to pour billions into a technology that would be dated in a few years when companies roll out next-generation mobile-phone technology. China would have even less use for Qualcomm's technology if its locally developed TD-SCDMA technology proves workable. "The company had planned to provide CDMA services this summer," said a spokesman for Unicom, quoted by the state-run Xinhua news agency Sunday. He said Unicom canceled that project because "the timing of constructing a narrow-band CDMA system has become unfavorable." Narrow band refers to Qualcomm's current CDMA technology. The spokesman said he expected Unicom to use Qualcomm's next-generation, or wide-band, CDMA technology in about 2003. But the spokesman also told China Business Daily that the February framework agreement, in which Unicom agreed to license some form of CDMA equipment from Qualcomm, "could be canceled." CDMA stands for code division multiple access, a cell-phone technology pioneered by Qualcomm, of San Diego. Unicom disclosed its plans as it launched a bid to raise $4 billion on stock markets in Hong Kong and New York this month. Senior Unicom executives on a road show that began last Monday in Hong Kong told potential investors the company wouldn't use Qualcomm's technology in its present form -- even as officials back in Beijing were saying it would stick to the framework agreement. The mixed messages caused a sell-off of Qualcomm's stock last week, which had risen more than 20-fold last year but has sunk 60% from its January high. (END) DOW JONES NEWS 06-04-00