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Rumor: Qualcomm to Lower CDMA Patent Fees in China

CCID, 12/16/08

A source at China Telecom (NYSE: CHA; 0728.HK) revealed recently that Qualcomm has decided to lower CDMA patent licensing fees for Chinese manufacturers - possibly even lower than the patent licensing fees levied by the WCDMA camp. Specific fee rates have yet to become clear.

According to Qualcomm's prior agreement with the National Development and Reform Commission (NDRC), it will receive a 2.5% licensing fee for domestically produced CDMA handsets sold within China, and 7.5% on exported handsets.

Qualcomm China confirmed that it was continuing to assess fees according to the previous agreement from several manufacturers it signed with this year, including Zhenhua (000733.SZ), Wingtech, and Huaqin.

Keywords: Zhenhua 0728.HK CHA China Telecom HuaQin NDRC patent Qualcomm WingTech wireless mobile phone reduction royalty 000733.SZ

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