In the divided world of wireless network standards, CDMA has been considered the dominant player but rarely used overseas. Currently, most of China’s networks use GSM. However, Qualcomm has been working hard to change that.

The Associated Press reported that China Unicom has awarded CDMA contracts to Lucent Technologies, Nokia, Motorola, Nortel Networks, and Ericsson, providing a windfall in the range of $200-million to $400-million each.

These contracts mark a turning point in the see-saw battle CDMA vendors have had with China, but many observers are not confident the Chinese government will deliver. Ray Jodoin, an analyst for Cahners In-Stat Group, told The Associated Press, "When they actually start putting in hardware, I’ll believe it," Then again, he added, "There’s still some other underlying reasons why China is trying to appear very favorable to Western technology," referring to Beijing’s ongoing efforts to be accepted into the World Trade Organization.

With nearly 70 percent, or 500 million subscribers, of the world’s cellphone users connected to GSM networks, Qualcomm is betting that victories in China, and with carriers like Nextel Communications showing signs of moving away from GMS towards CDMA, will give it the impetus it needs to build a worldwide presence.