Qualcomm Inc (QCOM)

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Qualcomm Inc plans software development facility in B’lore

The company ruled out picking equity stake in Reliance Infocomm and said it was going ahead only with a technical tie up.

NEW DELHI, PTI / UNI:


In a bid to capitalise on Indian software skills, Qualcomm, the US-based global CDMA telecom technology player, said on Wednesday it is considering setting up a facility for software development and chip desiging housing over 100 professionals.

“We are considering it....We should be making an announcement towards this next year,” Paul Jacobs, Executive President and Group President of Qualcomm, told reporters on the sidelines of India Convergence.

He said the investment to be made in India would be significant. “The facility in India would have over 100 people and in terms of quantum of investment it will be significant,” Jacobs said. The facility is reportedly proposed to be set up in Bangalore. Qualcomm is the only CDMA technology supplier to various handset manufacturing companies like LG, Samsung and Nokia. Asked about Qualcomm’s expectations about CDMA market in India, he said the company had predicted 13 million handsets to be shipped in India in fiscal ended September 2004. “The operators think this projection can be exceeded,” he said. Globally, Qualcomm predicts that 142 million handsets will be shipped during 2004.

The current CDMA technology-based telecom usage in India is over eight million subscribers.

Reliance is expanding its network and within a year it has made heavy inroads into Indian telecom market. With Reliance and Tatas starting the CDMA-based mobile telecom operations, the CDMA market has witnessed a phenomenal growth.

Asked about earlier reports of Qualcomm picking up a four per cent stake in Reliance Infocomm, Jacobs said, “They (Reliance) were able to launch their network without any investments from us.” On this front, nothing is happening at present, he said. “We are talking to Reliance Infocomm for a technical tie-up only and not for acquiring equity stake.”

He said Qualcomm was “scrambling” to meet rising demand for chips in the US, India, China and Latin America.

http://www.deccanherald.com/deccanherald/mar182004/b1.asp