Samsung, Qualcomm To Make Cdma Phones In India

Korean chaebol Samsung and the San Diego (US)-based wireless technology company Qualcomm Inc have opened talks on setting up a venture to manufacture code division multiple access (CDMA) cellular telephone handsets in India. The sets will be hawked for under Rs 6,000.

The two companies are also talking to Indian telecom companies, including the Reliance group. The discussions are aimed at sewing up a deal that envisages a commitment by the Indian telecom partner to buy a pre-determined number of phones each year. The Reliance group does not propose to acquire equity in the new venture.

But Samsung and other strategic partners may take equity in any new company that will be floated to manufacture handsets.

 

Sources familiar with the development said that the discussions have centered on Qualcomm, which pioneered CDMA technology, furnishing the technology for manufacturing CDMA phones and partnering a manufacturer of handsets such as Samsung. However, the US giant is also believed to have sounded other Korean CDMA phone manufacturers such as LG group on the project, though this could not be confirmed immediately.

Responding to a faxed questionnaire on all this, a Reliance spokesperson said tersely: