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Qualcomm Licenses CDMA to China Eastcom
Qualcomm Inc said on Tuesday it had granted a license to Eastern Communications Company Ltd (Eastcom) of China to manufacture next-generation CDMA wireless networking equipment, the third company to be granted such a license in China.
Qualcomm said in a statement that the royalty-bearing licenses cover the manufacture of equipment conforming to the cdmaOne and CDMA2000 1x/1xEV standards.
The license will allow Eastcom to use both chips and technology from Qualcomm in equipment for sale in China and globally.
The two standards are the next generations of CDMA technology, which will allow for faster data transfer rates and improved call quality for mobile phones.
Qualcomm has already granted similar licenses within China to ZTE and Great Dragon Telecom. Qualcomm and Eastcom have had a partnership arrangement since June 2000.
A spokeswoman for Qualcomm could not comment as to whether or not the company plans to sign up other CDMA licensees in China.
"We're always working with companies to further CDMA," she said.
She declined to comment on the financial terms of the deal.
Eastcom Chairman and Chief Executive Shi Jixing stressed the importance of CDMA to the company in an August 28 interview.
"CDMA is a future source of growth, like a sudden addition to our business," he said.
Shares in Qualcomm closed down 7.7 per cent at US$54.30 in late afternoon trade on Nasdaq. Year to date, Qualcomm shares are down 34 per cent.
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