Reliance Infocomm ditching CDMA?

Anil Ambani’s Reliance Infocomm is contemplating ditching Qualcomm’s CDMA cellular technology in favor of the widely used GSM cellular technology. Reliance is the leading provider of CDMA enabled handsets in India with 19 million customers. Reliance Infocomm has been upset by the high royalty costs paid to Qualcomm for use of its technology. More over, the Government of India has favored GSM technology when its comes to alloting frequency spectrum. Last week, Qualcomm’s CEO Jacobs was in India trying to broker a deal with Reliance. But Qualcomm was willing only to provide volume discounts instead of slashing its royalty costs as requested by Anil’s Reliance Infocomm. This has miffed Reliance who are now most likely to start rolling out cellular phones operating on GSM networks.

This is the latest in a series of setbacks for Qualcomm. Last month, Nokia had announced that its discontinuing producing CDMA phones in collaboration with Sanyo. Nokia derives much of its revenue from GSM enabled handsets and is currently involved in a bitter legal dispute with Qualcomm over licensing of 3G technologies. Also Broadcomm and Texas Instruments have requested Korea’s Free Trade Commission (FTC) to investigate Qualcomm’s business practices.

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1 comment so far

  1. Jerry on

    couldn’t happen to a nicer company!


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