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Qualcomm Signs Mobile-Phone Contracts With 8 Chinese Companies
Posted: 09-Jun-2000 [Source: Bloomberg]

[After recent setbacks, Qualcomm attempts to reestablish a foothold in China.]

Beijing -- "Qualcomm Inc., reviving its China expansion plans, signed pacts with eight Chinese mobile- phone makers, including the largest, to supply chipsets, software and information for its cell-phone technology.

"Qualcomm shares climbed 8.4 percent yesterday after Chinese phone-maker Eastcom said it will develop mobile handsets and wireless phone equipment based on Qualcomm's technology. Today, seven other Chinese phone companies also said they reached agreements with Qualcomm, state media and two of the companies said.

"Qualcomm is ``trying to establish a foothold in China's third generation (cell-phone) system,'' said Andy Perkins, head of Asian telecommunications research at Prudential-Bache International in Hong Kong. ``But don't expect the technology to become big in China till 2003 or 2004.''

"Qualcomm's bid to have its cell-phone technology, known as code division multiple access, or CDMA, used across China was set back when China United Telecommunications Corp., the nation's No. 2 phone company, said this week it would delay building such a network for two years. Qualcomm declined to comment on the new agreements.

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