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To: SGJ who wrote (38512)	7/3/2001 1:38:42 AM
From: Sully-	Respond to of 65232

Well, it sure was what the analysts made a big deal about prior to the signings & Chineese gov't approval. It will be interesting to see if they can now find other negatives to spin & keep a lid on QCOM. Long term, QCOM is in a sweet spot for significant growth. Unless something changes that makes the path to 3G non-CDMA, QCOM is in the drivers seat.......... when 'they' say it is time :- Ö¿Ö

To: SGJ who wrote (38512)	7/3/2001 2:29:05 AM
From: Sully-	Read Replies (1) \| Respond to of 65232

biz.yahoo.com Qualcomm sees China revenue contribution from Oct By Bill Savadove BEIJING, July 3 (Reuters) - China's work on a mobile phone network using the CDMA standard developed by Qualcomm Inc (NasdaqNM:QCOM - news) is going smoothly and should contribute to the firm's revenue from October, Qualcomm's chairman said on Tuesday. ``It took a little while longer than we expected, but things have been moving ahead well,'' said Irwin Jacobs, chairman and chief executive officer of Qualcomm, who spent years advocating that China build a nationwide CDMA network. ``We anticipate seeing impact from China in our next fiscal year. That begins for us in October,'' Jacobs told reporters. He said it would take several years to see the full effect, but declined to give estimates. Qualcomm announced on Tuesday it had signed agreements with two Chinese firms, allowing them to make and sell CDMA equipment. It will also open a development centre in Beijing this week to offer consulting, training and testing for CDMA technology. Qualcomm earns royalties on sales of equipment which use the CDMA standard. China's number-two mobile firm, China Unicom Group, plunged ahead with construction of the CDMA network in May, awarding around $1.5 billion in equipment contracts. Last year, Beijing gave the green light to CDMA -- or Code Division Multiple Access, which competes with the GSM standard that predominates in Europe -- after long delays and intense lobbying by the United States. Unicom, parent of Hong Kong-listed China Unicom Ltd , plans to finish the infrastructure for the CDMA network late this year or early next year and targets 15 million subscribers initially. ``With any system, it takes some time to go out and market that system, sell the phones and build up the subscribers,'' Jacobs said. ``But their intention, in fact, is to build up fairly rapidly their subscriber base on CDMA.'' DEBATE OVER 3G STANDARD Qualcomm signed an agreement with ZTE Corp to develop, make and sell CDMA handsets, making it the first mainland Chinese company to enter into such a licensing agreement. The U.S. company also signed a commercial licence agreement with China's Great Dragon Information Technology Corp Ltd to make and sell CDMA infrastructure equipment. Qualcomm's royalty rate is a ``low single digit'', but Chinese manufacturers selling phones domestically paid a lower rate, Jacobs said. He declined to give a figure. China would initially use cdmaOne technology and would test use of next-generation CDMA2000 within its existing spectrum in the near future, Jacobs said. China had yet to decide which of several standards to use for third generation (3G) mobile phones and would look at the options later this year, he said. Candidates include CDMA2000, Qualcomm's third generation standard, the competing WCDMA and China's own homegrown TD-SCDMA. GSM operators will migrate to WCDMA, but Qualcomm will still earn royalties on the sale of equipment using that technology. ``They're all CDMA technology -- CDMA2000, WCDMA, TD-SCDMA -- we of course are interested in all CDMA,'' Jacobs said. ``From a Qualcomm point of view, it's not critical financially to us which of those decisions are made.'' Ö¿Ö