Thursday, Jun 29, 2006
Info-Tech - Outlook
Qualcomm to help set up CDMA handset unit http://www.thehindubusinessline.com/2006/06/29/stories/2006062904820100.htm
Our Bureau
'Meeting of minds' with Maran, says Qualcomm CEO
New Delhi , June 28
Qualcomm Inc has told the Union Communications and IT Minister, Mr Dayanidhi Maran, that the company would enable setting up of Code Division Multiple Access (CDMA) handset manufacturing unit in the country. The company also said that it was working towards enabling cheaper CDMA handsets apart from leveraging its research and development centres in India for Qualcomm's global requirement by increasing the headcount.
After a closed-door meeting with Mr Maran, Qualcomm's Chief Executive Officer, Dr Paul Jacobs, said, "We had a discussion on manufacturing. I cannot disclose details, as we now have to go back to do a lot of work before that happens. We are actually going to get more manufacturers to the market."
Dr Jacobs said that Qualcomm would come in with design, the latest chipset, and hardware with engineering resources to enable local manufacturing. While the company does not manufacture handsets directly, it gives licences to companies such as LG and Samsung to produce CDMA handsets.
During the meeting, Mr Maran is understood to have told Qualcomm to remove all bottlenecks hindering the growth of CDMA services in the country. The Communications Ministry had earlier indicated that high royalty charges being paid to Qualcomm were coming in the way of cheaper handsets. Dr Jacobs said that there was a meeting of minds with Mr Maran over the issue. "More than affecting a reduction in the royalty charges, we would look to bringing down the cost of handsets through technological innovations."
Meeting with Anil Ambani
India's leading CDMA player Reliance Communications has also demanded a cut in royalty payments to Qualcomm. Reliance has even proposed to shift to the rival GSM technology. Mr Jacobs is expected to meet Mr Anil Ambani on Thursday in Mumbai.
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