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China probe may be aimed at Qualcomm’s 4G royalties

26
Nov
2013

Chinas anti-trust investigation into Qualcomm, the worlds biggest smartphone chip maker, is likely tied to the impending $16 billion rollout of commercial fourth-generation services by Chinas big telecoms carriers. The probe by the National Development and Reform Commission (NDRC), Chinas top economic planning body and price regulator, is a likely pre-emptive measure that will allow Chinas telecom providers to gain leverage in royalty negotiations ahead of the rollout of new high-speed mobile networks, analysts said. China Mobile, China Unicom and China Telecom are investing more than 100 billion yuan ($16.4 billion) in system equipment for the next-generation wireless networks, which are expected to be introduced nationwide over the coming year.

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