July 26, 2007 Newsletter

China has been viewed by the United States and many countries throughout the world as one of the last great frontiers for business. China's efforts at modernization, for example, have resulted in a push for cellular handsets in every citizen's hands, with a resulting boom in telecommunications business throughout the country during the last decade. One of the news items below, based on a report from iSuppli Corp., covers the growth of the mobile telecommunications industry in China for the next several years. The numbers appearing in the report are very large, which would prompt the interest of American and other businesses seeking to be a part of the technological (and commercial) revolution in China.

Unfortunately, the names of the four key telecommunications suppliers all start with the word "China," indicating where the business opportunities lie. Certainly, some foreign companies will have an opportunity to "share" their technology as part of this growth. But, in the end, it will be the national companies that serve the customers share in the benefits of the nation's growth into new technologies.

Long-term growth of telecommunications equipment and services, such as third-generation (3G) cellular telephones, in China is keyed to the country's National Development & Reform Commission (NDRC), according to a report from research firm iSuppli Corp. Because of the push for modernization, the Chinese government is offering 3G licenses to four state owned telecommunications operators: China Mobile, China Unicom, China Telecom, and China Netcom if they are willing to accept reforms in line with the modernization efforts. China Mobile, for example, has a near monopoly in the country's mobile communications market with $37.8 billion in revenue and a net profit of $8.5 billion last year. These changes would result in a more distributed business structure, in the hopes of improved services.

iSuppli Corp.

Financial results couldn't be better for telecommunications giant QUALCOMM, as the company reported record third-quarter fiscal 2007 results. Revenue was reported at $2.33 billion, up 19 percent from the previous fiscal year, while net income was reported at $798 million, which was 24 percent higher than the previous year. QUALCOMM's cash, cash equivalents, and marketable securities totalled approximately $12.3 billion at the end of the third quarter for fiscal 2007, compared to $11.3 billion at the end of the second quarter for fiscal 2007 and $9.5 billion a year ago. According to Dr. Paul E. Jacobs, the company's Chief Executive Officer (CEO), "We had another tremendous quarter, providing market validation for the innovative products and solutions delivered by our employees and partners worldwide. The fundamental drivers of our business remain very strong. Our record revenue and earnings this quarter reflect continued worldwide demand for innovative third-generation devices and services." In the third quarter alone, the company shipped a record 65 million CDMA-based MSM(tm) chipsets for third- generation cellular handsets.

QUALCOMM

70th ARFTG Microwave Measurement Symposium
November 27-30, 2007
Tempe Mission Palms Hotel
Tempe, AZ
http://www.arftg.org

2007 Asia-Pacific Microwave Conference
December 11-14, 2007
Grand Hyatt Erawan Hotel
Bangkok, Thailand
http://www.apmc2007.org/

2008 IEEE Radio and Wireless Symposium (with WAMICON)
January 22-24, 2008
Orlando, FL
http://www.radiowireless.org/

2008 IEEE International Solid-State Circuits Conference (ISSCC)
February 3-7, 2008
San Francisco Marriott Hotel
San Francisco, CA
http://www.isscc.org/