Qualcomm Strikes Deal With China’s Biggest Cell Phone Maker

San Diego wireless giant Qualcomm (NASDAQ: [[ticker:QCOM]]) has reached a licensing agreement with Beijing Tianyu Communications Equipment Co., China’s biggest cell phone maker.

Under the deal, Tianyu has obtained worldwide rights to develop, manufacture and sell Qualcomm’s proprietary CDMA2000 and WCDMA subscriber units and modem cards. Qualcomm said Tianyu will pay royalties at its standard worldwide rates. Tianyu manufactured about 24 million handsets this year.

The China Daily reports today the deal represents a shot in the arm for China’s CDMA business, which has been transferred recently from China Unicom to China Telecom as part of the country’s telecom restructuring.

China Telecom launched its CDMA service yesterday and vowed to invest nearly $11.7 billion to upgrade its network and buy handsets. Qualcomm’s CDMA technology was previously used for years by China Unicom.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.