Those attending included Lucent Technologies, Motorola and Ericsson. CDMA is a mobile phone technology that permits phone operators to store more calls and information across finite airwaves than the competing GSM system.

This is a significant step for Qualcomm technology which has attempted to enter the Chinese market for many years.

Qualcomm is the owner of patents on the CDMA or Code Division Multiple Access wireless technology and receives royalties from sales. The leading Chinese wireless group GSM CHINA Mobile would operate the CDMA network under license. This should enable the company to offer an additional service to subscribers without the large development fees that are integral.

The investment has been portrayed as a huge risk by the Chinese domestic media as in means direct confrontation with GSM, the dominant technology. The technology is expected to involve bidding from nine domestic firms and four foriegn firms.