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Qualcomm faces uphill struggle with European venture

OXFORD, United Kingdom—The bankrupt Dolphin Telecom is being positioned as a vehicle for Qualcomm to enter the European market. The U.S.-based equipment developer is the major backer of U.K.-based Inquam that is bidding to acquire the Terrestrial Trunked Radio (TETRA) radio spectrum owned by Dolphin.

“We won’t be responding to speculation …,” Emma Thorogood, Dolphin Telecom’s head of media and public relations, told Global Wireless. “We can only say we are seeking a buyer for Dolphin Telecom.”

While admitting its financial interest in Inquam, Qualcomm would not comment on what its interests are, although there has been much speculation that it plans to use the infrastructure and licenses owned by Dolphin to launch an assault on the European market—an ambition it has long held. However, license and spectrum issues would appear to be major hurdles to overcome if Qualcomm plans to deploy its cdma2000-based third-generation (3G) network. The conditions of the 3G licenses granted to European operators call for W-CDMA technology and frequencies that would make it extremely difficult for Qualcomm to overcome.

Regardless of this, the company has a track record of investing in 3G operators to persuade them to adopt its cdma2000 technology, and the attitude of the executives is such that its technology supremacy and ability to deliver high-speed data will eventually convince operators to seriously consider switching away from Europe’s W-CDMA policy.

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