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Tata, Reliance urge Qualcomm to cut royalty payments

Posted: 23 Jun 2006 ?? ?Print Version ?Bookmark and Share

Keywords:royalty payment? CDMA? Tata Teleservices? Reliance Communications? Qualcomm?

Tata Teleservices, India's second largest CDMA provider, has joined others in pressing Qualcomm Inc. to cut royalty payments.

Tata joins leading CDMA provider Reliance Communications in the effort to reduce Qualcomm's royalties. CEO Paul Jacobs is scheduled to arrive in India later this month to meet with Reliance executives. Jacobs is also expected to meet with Tata executives and government officials to discuss possible royalty cuts.

Qualcomm is in a tight spot here. Reliance, with about 20 million subscribers, and Tata, with about 10 million, together claim most CDMA subscribers in India. Observers said Qualcomm likely will be forced to accept some kind of royalty cut. One reason is that Reliance has threatened to switch to GSM-based services.

- K.C. Krishnadas
EE Times

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