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To: D.B. Cooper who wrote (74697)6/24/2000 12:18:00 PM
From: D.B. Cooper  Respond to of 152472
 
Qualcomm drafts CDMA road map for China
Sat Jun 24 00:05:00 EDT 2000

Jun. 23, 2000 (Electronic Engineering Times - CMP via COMTEX) -- HONG KONG -
With a handful of OEM agreements in hand and the backing of China's No. 2
telecommunications carrier, Qualcomm Inc. has unveiled its road map to help
Chinese manufacturers develop code-division multiple-access (CDMA) network and
terminal products.

San Diego-based Qualcomm made a series of announcements here at the CDMA World
Congress with an eye to boosting acceptance of the wireless technology in the
world's fastest-growing telecommunications market. Along with Qualcomm's
announcement of research and development agreements with eight leading Chinese
manufacturers, China Unicom said it will launch a trial next year based on
Qualcomm's cdma2000 1x multicarrier mode (MC) infrastructure.

Experts here predicted that China will open the door to CDMA technology and
equipment suppliers. But they said foreign suppliers need to fine-tune their
strategies and strive for more flexibility if they are to succeed in this huge
market.

Qualcomm said it has completed the first two steps after reaching a framework
agreement on intellectual property rights with China Unicom and R&D deals with
eight OEMs. Qualcomm's progress here could awaken the CDMA market in China and
generate future production licensing and chip sales for the wireless company.

"But before producing licensing, we need to receive information from the
government as to which company can be licensed," Irwin Jacobs, Qualcomm's
chairman and chief executive officer, said during the CDMA conference. China's
Ministry of Information Industry (MII) determines which telecom manufacturers
will get licenses.

With no indications yet about which companies will receive CDMA production
approval from MII, Qualcomm opted to establish a framework to help it transfer
technology to Chinese manufacturers through R&D pacts.

Qualcomm has 75 technology licensees around the world, including CDMA technology
licenses for 1x MC and wideband CDMA. Qualcomm's licensing policies for its
intellectual property have been similar regardless of which direction
manufacturers have chosen.

Jacobs said Qualcomm will offer similar terms in China to help local
manufacturers establish a CDMA industry regardless of which CDMA formats the
government selects for third-generation (3G) wireless.

Besides cdma2000 and W-CDMA, MII's Post and Telecom Academy has developed a
time-division synchronous CDMA (TD-SCDMA) system that has been accepted by the
International Telecommunications Union (ITU) as a 3G standard.

Meanwhile, a Beijing startup said it has developed a large-area synchronized
CDMA (LAS-CDMA) system with a minimum of six times the voice capacity and five
times the data capacity of the IS-95 standard.

Chinese OEMs such as Zhongxing Telecom and Huawei Technology, both based in
Shenzhen, and Beijing-based Datang Telecom and China Post and Telecom Industry
Corp. (PTIC) have invested heavily in CDMA. Huawei announced recently that its
CDMA system had passed a comprehensive test conducted by MII. PTIC released its
CDMA basestation months ago.

Zhongxing Telecom was scheduled to demonstrate commercial CDMA products,
including a CDMA basestation, mobile switch and CDMA handset, in Shanghai last
week. The company will base its systems on IS-95A/B and will demonstrate
software to upgrade the entire system to cdma2000 1x or 3x specs.

Industry watchers said the key to Qualcomm's success here is how well it times
its entry and how it handles technology transfers. Jacobs said the more Chinese
companies that develop CDMA technology, the better, but homegrown 3G CDMA
standards and cooperation with other chip makers could benefit China in the long
run.

China has been a key market for Global System for Mobile Communications (GSM)
systems and handsets for years, but that market is dominated by such offshore
powerhouses as Motorola, Ericsson and Nokia. Local cellular phone producers hold
only 2 percent of the Chinese GSM handset market. Both the government and
industry are thus looking for opportunities and technologies to secure a
foothold in comms.

Fabless semiconductor companies view China's push into CDMA as an opportunity.
Qualcomm CDMA Technologies (QCT) has become a one-stop supplier for China's
telecommunications OEMs. "We provide digital integrated circuits for baseband,
IF and RF integrated circuits; software to make handsets work; technical support
such as application engineering and test; and tools," said QCT president Don
Schrock.

Schrock predicted that many of China's manufacturers will team with his company
after the Qualcomm R&D agreements take effect. He said QCT chips let
manufacturers include such multimedia features as MP3, MIDI Ringer, global
positioning satellite systems and high-data-rate abilities. QCT's chips will
sample this fall, he said.


QCT received the Third Generation Pioneer award during the CDMA World

Congress.

Qualcomm chairman and CEO Irwin Jacobs waits for Beijing's decision on 3G
formats and manufacturers.


eetimes.com