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Reliance rejects Qualcomm offer of discounted pricing

Reliance Communications Chairman Anil Ambani has rejected the new offer from Qualcomm related to volume-based discount on CDMA technology based mobile phones sold in the country.

This has resulted in the collapse of talks between the two parties. Ambani had a long talk with the Qualcomm CEO Paul Jacobs. Reliance had asked for a reduction in handset prices by reducing royalty levies.

The company said that the offer from Qualcomm was not opaque and not in the interests of consumers.

Interestingly, Qualcomm also offered to share marketing, advertising and promotional costs with Reliance in the Indian market. Reliance however is not amused as market reports claim that the company charges 7 per cent royalty on CDMA technology based handsets in the Indian market, which is much higher than what they charge in China and Korea.