In early spring, Yulong Computer Telecommunication (Shenzhen) Co., Ltd. entered into an agreement of full-scale patent cooperation with the global wireless communication heavyweight Qualcomm after it attracted much of the spotlight in the centralized procurement of China Unicom with its winner “dual-network, dual-connection” CoolPad 728 handset. The cost for the patent right as stipulated in the said agreement from Yulong to Qualcomm is based on standard rates of the patent right owner Qualcomm. With the deal in hand, Yulong joined the first legion of Chinese communication players that had concluded related agreements with Qualcomm. Yulong has now secured a head start in the run-up towards the long-awaited 3G.

Qualcomm, a Fortune 500 enterprise, is influential and powerful in the digital wireless communication technology domain. The services of Qualcomm cover the technically leading 3G chipset, system software, and development tools and products. In the global context, over 125 telecom equipment vendors adopt its technologies. The selection of Qualcomm by Yulong as its technical cooperation partner aims to consolidate the 3G technical edge on the basis of the original R&D capability, and gear up efforts to strengthen the strategy of strong techno-driven enterprise. ”The technology license agreement signed enables Yulong to develop competitive 3G products to compete in the market,” said Guo Deying, General Manager of Yulong. According to sources, Yulong will apply the CDMA patents of Qualcom globally to develop, manufacture, and sell the user units that use all CDMA standards (for example, CDMA2000 1X/1XEV -DO, W C D M A /U M T S).

In 2006, full-scale 3G operations are highly likely to be materialized. The application technologies that surround the three major 3G standard systems have become the technical bottleneck of mobile phone vendors. Yulong gained the application technologies of two of the three major standard systems with the technical deal with Qualcomm. To cope with the fierce domestic market competition and the advent of 3G, Yulong actively sought cooperation with Qualcomm to gear up the R&D of mobile phones. It makes technical and production preparations for the still changing domestic 3G market. In addition, through the cooperation, it visions the sales of 3G mobile phones through the international market, the expansion of new services, and the accumulation of operation experience.