Faced with the possibility of declining market share, especially in the international market, Qualcomm is likely to take up the issue of chipset price reduction for the Indian markets in its forthcoming board meeting. Indian CDMA operators have proposed to Qualcomm that its chipset cost be reduced to bring it on par with GSM chipset costs. For a low-end handset ($40), the chipset for CDMA-based handsets costs $10, while the same for GSM handsets is $5. Separately, a team of senior Qualcomm officials will meet officials of Reliance Communication, TTSL, HFCL and DoT to discuss the royalty issue by end-July.
