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To: Sully- who wrote (533)	9/11/2000 9:50:13 PM
From: Dealer	Respond to of 65232

QCOM--Thanks wstera I moved the article over here: QCOM--China backs US mobile technology developed by Qualcomm By James Kynge and Dan Roberts in Beijing Published: September 11 2000 20:09GMT \| Last Updated: September 12 2000 00:05GMT China's telecommunications minister has renewed the country's commitment to narrowband CDMA, the mobile telephony technology developed by the US company Qualcomm. The comments from Wu Jichuan, minister of information industry, could ease fears that the US technology would not be employed in China - the world's second largest mobile phone market - following an apparent retreat by the Chinese from an earlier promise to use the US-developed standard. Mr Wu criticised "confusing" state media reports which ruled out the possibility that China Unicom, the state's second carrier, would adopt CDMA technology. "In order to cater for the needs of this market, we must introduce and adopt narrowband CDMA IS 95. This is a necessity," Mr Wu said. "There have been many views expressed in the media but the more that is said, the more confused people become." His remarks represent the most emphatic endorsement of narrowband CDMA technology made by a senior Chinese official in several months. In June, senior Unicom executives said that the company had no intention of rolling out a narrowband CDMA network, triggering a significant decline in Qualcomm's share price. CDMA is the main competitor to GSM, the European mobile technology sold by companies including Nokia and Ericsson. China is either the world's largest, or second largest market, for Ericsson and Nokia and billions of US dollars in potential US equipment sales rest on to what extent Mr Wu's words are translated into action. Chinese adoption of narrowband CDMA would help ease short-term concerns about Qualcomm's prospects. Mr Wu did not indicate how much CDMA technology would be bought or whether a national network - as originally envisaged by Unicom - would be attempted. China Mobile, the dominant state mobile company which relies on GSM, has yet to shown any public interest in rolling out a CDMA network. Telecoms analysts said one of the considerations behind Beijing's change of heart on CDMA may have been political. Officials recognise the importance of trade to bilateral ties with the US and the lobbying power in Washington possessed by companies such as Qualcomm and Lucent Technologies, which also makes CDMA equipment. From a domestic perspective, a limited CDMA network could also make sense. It would allow China to play US and European competitors against each other, helping it to win technology transfer commitments and cheaper procurement deals. There are also domestic political considerations. Zhu Rongji, the premier, personally ordered the rapid development of CDMA equipment by domestic companies such as ZTE, a domestic "champion" which Beijing hopes will become a multinational supplier. A U-turn at this stage could damage China's reputation and prove costly for companies such as ZTE that have developed a range of CDMA technology, including base stations. "If CDMA was allowed to develop now, ZTE would have a 30 per cent market share [for CDMA] technology in two years' time," said Hou Weigui, president of ZTE. He said that narrowband CDMA was far from obsolete because it would be five years before China completes its transition to third generation technologies.