The pioneer and world leader of code division multiple access (CDMA) digital wireless technology Qualcomm has signed a commercial CDMA subscriber unit and infrastructure licensing agreement with UTStarcom Inc, a global leader in IP access networking and services.

Under the terms of the worldwide royalty-bearing agreement, which was announced Tuesday in Beijing, Qualcomm has granted UTStarcom a patent licence to develop, manufacture and sell subscriber and infrastructure equipment for use in CDMA2000, wideband CDMA (WCDMA) and time division synchronous CDMA (TD-SCDMA) systems.

"Qualcomm is pleased to enter into this agreement with UTStarcom, an industry leader in providing cost-efficient wireless communication solutions globally," said Marvin Blecker, senior vice-president and general manager of Technology Licensing for Qualcomm.

"Qualcomm's CDMA technology and strategy enables UTStarcom to extend its existing wireless solutions to carriers throughout the world.

"Qualcomm continues to build on its leadership and expertise in developing and delivering end-to-end 3G (third generation) solutions for all markets that enable broad product segmentation, product differentiation, and enhanced wireless applications and services."

Taher Behbehani, vice-president of Business Development and Strategy at UTStarcom, said: "UTStarcom firmly believes in the future of 3G CDMA and we are pleased to work with Qualcomm to help grow the worldwide 3G CDMA market.

"This licence agreement broadens UTStarcom's global wireless position, complements our existing 3G products and technologies, and opens up an attractive suite of applications that are synergistic with our personal access system (PAS) services in high-growth, developing worldwide markets."

With its turnover reaching 16 billion yuan (US$1.9 billion) last year, UTStarcom became one of the top telecom equipment vendors in China.

In China, UTStarcom has forged a tight relationship with China's two largest fixed-line operators - China Telecom and China Netcom, by providing PAS infrastructure and equipment. Both of the telecom operators have used the PAS service to increase revenues while gaining operational experience and customer relationships ahead of the actual receipt of mobile licences, expected early next year.

Earlier this month, UTStarcom Inc introduced its first dual-mode PAS/GSM handset to the market, which enables PAS subscribers who travel outside of their service area to make and receive calls on surrounding GSM networks.

Insiders believe that under the partnership, UTStarcom is likely to produce dual-mode PAS/CDMA handsets or even multi-mode PAS/CDMA/GSM handsets to meet market demands.

In another development, thanks to the brilliant performance of CDMA technology, the 3G standard has been winning increasing popularity in the international market.

On Friday, the Hong Kong Special Administrative Region's government said it wants to replace the two older standards in the region with CDMA2000.

Also in the European market, a committee representing European telecommunications regulators this week decided to allow the CDMA mobile telecoms standard to be used in certain specialized networks in Europe, according to Dow Jones Newswires.

(China Daily March 24, 2004)