Qualcomm, Reliance Communications agree to expand

US-based Qualcomm, the dominant supplier of the chips that drive code division multiple access (CDMA) mobile phones, and Reliance Communications have agreed to expand the use of the technology in India.

RCom, which is the largest provider of CDMA-based mobile telephony in the country and also operates GSM-based services in some areas, will expand its CDMA 2000 network to 20,000 more towns.

Today’s announcement, which came after Qualcomm chief executive Paul E Jacobs met RCom chairman Anil Ambani in Mumbai, scotches the widespread buzz that the two had been haggling for more than a year over the amount of royalty to be paid.

Jacobs is also slated to meet Ratan Tata, whose Tata Teleservices is another sizeable CDMA operator, and S Ramadorai, the chief executive of Tata Consultancy Services, the software arm of the group.

It had been alleged that Qualcomm was charging higher royalty in India than in other countries. However, neither party confirmed it and it is Qualcomm’s policy not to reveal the royalty structure.