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Eight Companies to Develop CDMA
Eight of the leading Chinese mobile communication equipment producers signed research and development agreement with US-based Qualcomm Corp on intellectual property rights of CDMA (Code Division Multi Address) to improve the localization of the technology.
The eight companies are: Beijing-based Datang Telecom and Capitel, Shenzhen-based Huawei Technology and Zhongxing Telecom, Hangzhou-based Eastcom, Jinan-based HiSense Group and Langchao Group, Shanghai Lawton Technology Group.
As licensees of Qualcomm, the companies are expected to develop CDMA handset and base station prototypes based on IS-95 A/B and 3G (third generation) 1X Multi-Carrier standards.
The agreement also provides the option to secure commercial licenses of such products at any time during the term of the research and development agreement.
The alliances follow China Unicom's announcement last week that it will construct a wide-band CDMA 2000 network.
Experts say that over 50 per cent of the intellectual property rights of the CDMA 2000 technology are held by Qualcomm.
China Unicom, the second biggest domestic mobile communication operator, had planned to provide CDMA services this summer after the State Council authorized it last year to solely construct and operate a CDMA network in the country.
Qualcomm will be the biggest winner from the deal. The company has long been interested in entering China and has at last gotten its foot in the door of this rapidly growing market.
"Qualcomm is the recognized leader and pioneer of CDMA technology," said Shi Jixing, chairman of Eastcom. "The co-operation will fortify domestic 3G CDMA capabilities."
"The deal will give Chinese manufacturers superior data capabilities," said Yang Dacheng, professor of Beijing University of Post and Telecommunications.
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