CDMA lowest in India, Qualcomm tells Maran

NEW DELHI: Even as Qualcomm CEO Paul Jacobs is scheduled to meet communications and IT minister, Dayanidhi Maran on Wednesday, the company, in a written communication to the minister has said that “average CDMA royalties are lower in Indian than anywhere else in the world.”

Qualcomm has also sent copies of its communication to Mr Maran to the telecom secretary and chairman of Telecommunications Commission.

“Since India has the lowest handset prices in the world, the royalties paid to Qualcomm on CDMA handsets are the lowest in the world.

Royalties on handsets are so low that they do not contribute in any meaningful way to the wholesale price of CDMA handsets, which in some cases, have dropped below $40. CDMA phones are more expensive than GSM due to the extra data and service capabilities of CDMA handsets, not due to Qualcomm’s royalty structure,” the firm clarified in its letter to Mr Maran.