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News
Issue #2002 - 11 (March 2002)
(Updated Mar.
20, 2002)
ACQUISITIONS,
MERGERS & AGREEMENTS
Qualcomm Looking to Small Indian
Software Companies To Boost CDMA
Qualcomm is hoping to expand
its presence in India, the company’s chairman and CEO Irwin Jacobs
told Reuters." I think the next opportunity here in India will
have to do with the development of software and possibly working
with manufacturers of equipment," he said.
"I think some of them [the investments] may end up being
small software companies that wish to write applications for
wireless devices that would be used over CDMA," Jacobs added.
The wireless technology giant has set aside $400-million
worldwide for such investments, which would be divided into a number
of small-ticket investments of about $1.5-million each.
In January, the company said it would invest $200-million in
Reliance Communications, a segment of the Reliance Group, India’s
largest conglomerate, to aid in the deployment of CDMA mobile
technology. Reliance is investing $5.14-billion to offer fixed line,
mobile, long-distance and international phone services, as well as
data, Internet and entertainment services across the country by the
end of 2002.
The American company is looking to capitalize on the Indian’s
government’s decision to open up the telecommunications industry.
Currently, the country’s mobile phone industry is dominated by the
GSM standard, but the government has now allowed the use of CDMA
wireless in local loop technology by fixed-line companies to enable
faster roll-out of networks by eliminating the need to lay down
cables.
Jacobs said if a suitable firm is not found, the company will set
up its own research and development center, drawing on India’s
pool of talented software developers.
For more information: http://www.qualcomm.com
Mobileinfo Comments & Advisory: This
is a good strategic investment by Qualcomm. India's software industry
has established itself as a leading producer of high quality and low
cost infrastructure software for the telecommunications industry. Hughes
Software Systems (HSS) and Motorola's R&D lab are two shining
examples. India has two out of the five software development
houses that have reached 6 sigma certification (highest standard
of software reliability) from Carnegie Mellon University in Pittsburgh,
USA - an honor that only USA can match. One of these development labs is
Motorola's Bangalore R&D facility.
China has also dedicated some resources
to CDMA deployment. As a publication promoting open and
spectrally-efficient wireless network architecture, we would like to see
CDMA as one (not necessarily the only one) underpinning of 3G networks.
Sooner or llater, we shall have to find a way of replacing GSM/GPRS
which we treat as a reasonable short-term solution. For 4G networks, we
may find something even better than CDMA from modulation protocol point
of view. Qualcomm is aware of that.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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