China Unicom, Qualcomm Form CDMA Venture

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Last updated at: (Beijing Time) Thursday, February 27, 2003

China Unicom, Qualcomm Form CDMA Venture

China Unicom, the country's second largest mobile telecom operator, formed a joint venture with US-based Qualcomm Inc yesterday in Beijing.

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China Unicom, the country's second largest mobile telecom operator, formed a joint venture with US-based Qualcomm Inc yesterday in Beijing.

The move will boost the development of its Code Division Multiple Access (CDMA) wireless data applications through Qualcomm's Binary Runtime Environment for Wireless (BREW) platform.

"It is a new step which will help promote CDMA 1X data services," said Yang Xianzhu, chairman of China Unicom.

He said each company would hold a 50 per cent stake of the new joint venture, called Unicom Brew Wireless Technologies Ltd.

Company leaders said tens of millions of yuan had been invested in the project, but did not give specifics at yesterday's press conference.

According to the agreement signed, the joint venture is in perpetuity and ultimately may be spun off in a public offering.

The BREW platform is part of a complete, end-to-end solution for wireless applications development, device configuration, application distribution, and billing and payment.

BREW-based services will enable consumers to customize their handsets by downloading applications from a carrier's server.

According to Lu Jianguo, board chairman of the new venture, the company will capitalize on the technological advantages of BREW and the competitive advantages of CDMA in wireless data.

Meanwhile, the new company will train local technology developers, set up a phone support centre, establish a BREW development lab, provide testing services for applications and promote the BREW solutions.

"The joint venture will nurture the fast-growing BREW development community in China with the mission of creating a powerful and personalized wireless experience for China Unicom subscribers," said Irwin Jacobs, chairman and chief executive officer of Qualcomm Inc.

Analysts predicted the commercialization of the BREW platform would start mid-year.

They said BREW technology should have a positive impact on usage rates for wireless data and the advanced CDMA 1X network.

China Unicom is now upgrading its CDMA network into CDMA 1X, due for completion by the second half of the year.

China Unicom has recruited more than 8 million CDMA subscribers so far. It aims to attract 13 million subscribers this year.

In the global context, BREW-based services are currently offered by many telecom carriers such as Verizon Wireless and ALLTEL in the United States, KTF in South Korea and KDDI in Japan.

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