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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: 49thMIMOMander who wrote (13327)	7/3/2001 9:47:25 PM
From: S100	Read Replies (1) \| Respond to of 34857

snip The new licenses grant the two Chinese companies the right to make and sell equipment based on Qualcomm's CDMA standard, which can support current and future generations of mobile phones and wireless devices. Mr. Jacobs, in Beijing to open a new training center to speed the rollout of CDMA, predicted a jump in mobile-phone users, which he said would be a boon for Qualcomm's business. "China still has a relatively low penetration rate, meaning most of the growth is yet to come," he told reporters. That potential has spurred Qualcomm to play favorites, analysts say. Efforts to nurture Chinese manufacturers with low fees and extra training is politically astute in a country where its toehold is still tenuous, said Craig Watts, an telecom analyst at technology consultancy BDA (China) Ltd. In the eyes of the government, "Qualcomm is meeting its obligations," he said. But, by cozying up to Chinese equipment makers, Qualcomm risks angering customers in other markets. The higher royalty fees South Korean telecom firms pay Qualcomm, for example, squeeze their profit margins, drag on equipment exports and hinder efforts to expand CDMA use in that market, analysts said. "They can't maintain a dual policy on royalty fees," warned James Kim, a technology analyst in Seoul for Salomon Smith Barney. Qualcomm could come under pressure to renegotiate those fees, especially as low-cost Chinese competitors look to export CDMA equipment. One of them is Shenzhen-based ZTE, which signed the first licensing agreement with Qualcomm. It has already started producing equipment for the new CDMA network, and although a ZTE executive wouldn't disclose terms of the contract, she confirmed that Qualcomm extended the company "favorable treatment." snip No favorable treatment for Nok? How to compete in China, write it off?