As Qualcomm continues to face pressure to cut its royalty rates for CDMA in India, the CEO says the company doesn't make a 7-percent royalty in that country as critics claim. In general, says CEO Paul Jacobs, Qualcomm's rates are below 5 percent. Jacobs claimed the company has created competition, bringing down handset prices by 25 percent at the low-end. Yet India's CDMA operators, Reliance and Tata, complain that CDMA handsets aren't competitive enough on price to compete with GSM. The CDMA Development Group countered in a release earlier this week, saying there are 21 CDMA phones being offered for less than $50 (wholesale) from 10 different suppliers in India. This compares with 18 GSM handsets being offered for less than $50 from five suppliers.
To read more about Qualcomm's stance on royalties in India:
- check out this report from EE Times