Bucking an anti-investment tide generated by the SARS epidemic, two major wireless players, Qualcomm Inc. and Nokia Corp., announced initiatives to pursue CDMA investments in the Chinese market.
Qualcomm said it has committed up to $100 million in venture investments in early- to mid-stage Chinese companies that develop and commercialize CDMA-based products, applications and services. It is part of the company’s $500 million commitment announced in November 2000.
In addition, the Chinese government granted Nokia a license to manufacture and sell mobile terminals using CDMA technology.
“Qualcomm’s investments over the next several years in promising, young, Chinese entrepreneurial companies will contribute to the growth of CDMA worldwide during this key expansion phase for the Chinese CDMA industry,” said Tony Thornley, president and chief operating officer of Qualcomm. “China possesses a large pool of strong technical and marketing talent in CDMA. We expect to see a rapid increase in the number of new CDMA-related companies in China as third-generation CDMA technology is deployed worldwide.”
The San Diego-based company said it will target CDMA-based communications technology and devices, BREW application and platform developers, including gpsOne location-based application developers and service providers. The company will also focus on enabling and complementary technology providers.
“A dedicated China-based team from Qualcomm will manage the fund and its investments, with active involvement from Qualcomm senior management,” said the company.
The company has been working to expand its presence in Greater China by partnering with the Chinese government, China Unicom, CDMA manufacturers, BREW and gpsOne application developers, and other businesses.
Nokia said it will work with its joint venture, BNMT, to introduce its first CDMA-based products for the Chinese market.
“Nokia plans to build an equally strong presence in CDMA in China as we currently have in GSM,” said Urpo Karjalainen, president of Nokia Investment Co. Ltd. in China.
The Finnish vendor said it has invested significantly in research and development and one of the fruits is its Nokia 6108, a model specifically designed in and planned for China. Nokia has recently ramped up its CDMA program, not only committing to selling phones but also core infrastructure equipment. The company also entered an alliance with Texas Instruments and STMicroelectronics to license CDMA chips.
Nokia has more than 50 offices and two research and development centers in China, employing more than 4,700 people.
