Important year ahead for Qualcomm

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Last updated at: (Beijing Time) Monday, February 16, 2004

Important year ahead for Qualcomm

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Wang Jing, chairman of Qualcomm China Ltd, says the firm, the world leader in CDMA (code division multiple access) digital wireless technology, is looking at steps to both empower and energize the industry in order to boost its role in the nation's market.

"2004 will undoubtedly be a significant year for China's wireless development and for Qualcomm and our partners in China as compelling wireless applications and services continue to drive forward market development," Wang r said.

He said that the company is going to develop CDMA 20001X EV-DO in China this year, a 3G technology based on CDMA 20001X,.

Qualcomm is now supporting China Unicom, the country's second-largest mobile operator, to deploy its CDMA 20001X networks, a 2.5G technology, across China.

"We believe that the sooner 3G licences are issued in China, the better China will be able to play a full role in the 3G success story that is unfolding across the globe. The early rolling out of the 3G service benefits both Chinese consumers and the domestic industry," Wang said.

It is reported that the nation's big four telecom operators - China Mobile, China Unicom, China Telecom and China Netcom - will win 3G licenses in the latter half of this year.

Some industry observers actually believe that WCDMA, rather than CDMA2000, in which Qualcomm has the most vested interests, will have the greatest market presence in China.

"We expect to see more than one 3G standard adopted and deployed in China. And we will continue to provide our CDMA expertise and cutting edge technology solutions to support the roll-out of 3G in China", Wang noted, adding that Qualcomm supports all 3G standards - CDMA 2000, WCDMA and TD-SCDMA.

Qualcomm announced last year that it would invest up to US$100 million in new Chinese companies engaged in the development of CDMA based products, applications and services. This will help develop the firms that provide content for mobile phones, another fledgling segment of the nation's CDMA industrial value chain.

By contributing to the growth of the three major segments in China's evolving CDMA industrial chain, namely mobile carriers, equipment vendors and application developers, Wang said he is confident that it is well positioned to help China achieve its full potential as a major player in the coming 3G CDMA era.

"Qualcomm succeeds only when our partners are successful," Wang noted, a point that has been borne out by the company's steady growth in recent years as it earned profits by providing chipsets and collecting technology licensing fees from telecom equipment vendors who use Qualcomm's patents in their manufacturing.

As one of the telecom industry's major players, Qualcomm benefits greatly from China's rapidly growing CDMA user base.

For example, China Unicom, one of Qualcomm's major partners in China has recorded a rapid growth in its CDMA network in the two years since it launched CDMA-based services. With more than 20 million CDMA subscribers, China Unicom has now grown into the world's second biggest CDMA carrier, challenging the top spot currently held by Verizon Wireless, the leading mobile carrier in the United States.

"With technological support from Qualcomm, Unicom has successfully launched a whole host of value-added services designed to improve and enrich the lives of millions of users," noted Wang.

China Unicom sources said the company is also scheduled to launch a dual-mode handset based on Qualcomm's GSM1X technology.

GSM1X is a deployment option allowing GSM carriers to deliver efficient CDMA2000 1X voice, data and enhanced services utilizing commercial CDMA2000 radio infrastructure equipment, while preserving their GSM SIM distribution model, authentication, roaming and GSM back-office systems and processes.

Source:China Daily

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