Qualcomm CEo rushes to India as Reliance plans to roll out GSM-based mobile services
Media Release
Jun. 16, 2006

Shortly after Reliance Communications'' announced plans to roll out GSM-based mobile services, top brass of Qualcomm, developer of CDMA technology, will be visiting India next week and may hold discussions with the company on royalty obligations.

Qualcomm gets seven per cent royalty from CDMA operators for using the chips in CDMA-based handsets, thus inflating their operation cost.

Qualcomm's worldwide CEO Paul Jacob is also likely to meet Communication and IT Minister Dayanidhi Maran, who recently had said that CDMA operators were at a disadvantage due to their royalty obligations and were unable to bring down the prices of handsets.

Reliance Communication had recently approached the Department of Telecom (DoT) seeking spectrum in the 1800 Mhz band to start GSM operations, starting with Delhi and Mumbai, a development that may cause a loss of revenue for Qualcomm.

Although the company officials declined to comment on Qualcomm management's proposed visit, sources said discussions may take place between Qualcomm and Reliance Communications on terms of royalty payment.

Besides Reliance, Tata is another major CDMA player in India with a virtual pan-India footprint.

DoT has also sought more details from Reliance before taking a decision on its application for release of spectrum.

The DoT is hoping to get 45 Mhz spectrum in the 1800 band by end of this year and most of GSM operators have lined up for additional frequency for their future growth.

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Media Release
Reliance Communication had recently approached the Department of Telecom (DoT) seeking spectrum in the 1800 Mhz band to start GSM operations, starting with Delhi and Mumbai, a development that may cause a loss of revenue for Qualcomm.
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