To: Johnny Canuck who wrote (35175 ) 11/17/2001 4:12:56 AM From: Johnny Canuck Read Replies (1) | Respond to of 67941 Chinese CDMA equipment makers hit out at Qualcomm By Mike Newlands, for Total Telecom 16 November 2001 Qualcomm Inc. has now come under fire in China despite previous accusations by Korean vendors that the company favored Chinese CDMA equipment manufacturers. The Beijing Evening News reports that 18 firms are unhappy with "Qualcomm's hand already reaching into their purses even though they have not seen a penny of profit from using the CDMA technology." The vendors will have to pay Qualcomm a 2.65% license fee on domestic sales and 7% on exports. The U.S. company was previously accused by Korean CDMA equipment manufacturers of having reneged on an agreement with them by giving Chinese companies favorable treatment. The Koreans objected to the fact that the 18 Chinese cellphone manufacturers were set CDMA licensing fees at rates that make their products very competitive with Korean products on the Chinese market. The Chinese paper reported that some of the 18 firms are looking for ways "to circumvent the patent restrictions imposed by Qualcomm." It noted that Zhejiang-based Holley Group recently acquired the CDMA design operations of Philips Semiconductor in Vancouver, Canada and Dallas, Texas. "As a result, Holley now owns all the intellectual property rights, research-and-development facilities, research data and researchers of Philips' wireless operations, as well as the CDMA software developed by Philips," the article noted. The paper said this has made it possible for domestic CDMA cellphone makers to obtain CDMA technology through an alternative channel, although they "have not given up hope on "making Qualcomm reduce the fees through negotiations and other channels."totaltele.com [Harry: There has always been the suspicion of whether China is going to be a profitable as many people have portrayed. I remember AFCI commenting, that they did not think they could make money there, same thing for ADTN I believe. While I agree there is money to be made, getting it out of the country and getting paid have always been a issue.]