"Qualcomm announced a deal with China Tuesday that clears the way for the wireless telecommunications company to finally break into the lucrative Asian market.
"The pact with China Unicom, the country's second-largest, government-owned communications company, lays the foundation for Chinese wireless equipment manufacturers to make mobile handsets and network infrastructure using Qualcomm's CDMA technology. It also allows for Chinese carriers to deploy networks based on the higher-capacity wireless technology.
"China Unicom negotiated the deal on behalf of the Chinese government, carriers and equipment makers. The financial terms were not disclosed.
"After the announcement, shares of Qualcomm rose 7 percent, or $9.06 1/4, to $136.06 1/4 at 4 p.m. on the Nasdaq Stock Market. The shares jumped 15 percent Monday in anticipation of the deal.
"``This significant agreement allows for the rapid expansion of CDMA in China and supports China Unicom's plans for a nationwide deployment of CDMA,'' Qualcomm chief executive Irwin Jacobs said in a statement.
"The agreement, pending the approval of Chinese and American government agencies, will allow Qualcomm to negotiate licensing agreements with individual manufacturers in China.
"The San Diego-based company has been negotiating for years the distribution of its CDMA, or code division multiple access, digital phone system. The technology, widely used in the United States, provides better security, longer battery life and clearer reception than other types of wireless service, Qualcomm officials say.
"China Unicom expects to build a CDMA network this year that can handle 10 million subscribers, said chairman and general manager Yang Xianzu.