Qualcomm Says CDMA Deal in China ‘Close’

Qualcomm Inc., a U.S. developer of the fastest-growing digital mobile phone standard, said it’s “very close” to a pact that could mark the first widespread use of its Code Division Multiple Access technology in China. Qualcomm Senior Vice President Louis Lupin made progress during talks last week with China United Telecommunications Corp. on building CDMA networks in China, said Leo Zhang, Qualcomm’s managing director for China. Zhang said the complexity of the discussions may delay a final agreement until after the lunar New Year holiday, which falls on Saturday. “It’s a package deal involving technology transfer and agreements on intellectual property rights,” Zhang told the Asian Wall Street Journal. China’s mobile phone market is expected to grow to 70 million users by year-end from 43 million at the end of 1999. China agreed in March to open its markets to suppliers of CDMA phone equipment. So far CDMA networks have been installed on a trial basis in selected cities. On Friday, Qualcomm shares closed down $9.44 at $110.56 on Nasdaq.