China is set to become Qualcomm Inc's biggest regional market after the country issues 3G licenses, Sanjay Jha, the company's chief operating officer, said yesterday in Shanghai.

The United States-based wireless chip designer expected revenue to grow in China through deeper cooperation with domestic clients, like Huawei, and surging demand for advanced phones in China, according to Jha.

China, the company's second-biggest regional market, contributed 21 percent to its global revenue, which reached US$8.87 billion in the fiscal year ended September 30. South Korea was its No. 1 market with 31 percent contribution.

"It (China's issue of 3G permits) is a great positive effect (on revenue), and it's absolutely possible," Jha told Shanghai Daily.

China is set to launch the third generation technology later this year or next year, which allows carriers to offer data-rich services on cell phones, from broadband Internet access to location services.

Qualcomm licenses wireless chip technologies to telecommunications equipment makers and phone vendors on two 3G technologies - CDMA2000 (code division multiple access) and WCDMA (wideband-CDMA).

By 2012, more than 1.6 billion people globally will use 3G phones, Jah said. China is No. 1 globally with 550 million cell phone users.

"The 3G uncertainty has forced carriers to be cautious on spending and the (issue of) 3G licenses will trigger investments," said Li Ke, an analyst at CCID Consulting.

(Shanghai Daily March 19, 2008)