MediaTek, Qualcomm seal patent deal

The arrangement, which covers code division multiple access (CDMA) and wideband CDMA (WCDMA) essential patents held by the world's largest fabless chip supplier, is crucial for MediaTek to gain access to the third-generation (3G) mobile chip market outside China.

CDMA technology is the basis for 3G wireless technology, which offers increased voice capacity and provides higher data rates than 2G and 2.5G networks.

MediaTek has so far maintained the lead in the market for time division synchronous code division multiple access (TD-SCDMA) chips in China, controlling 40 percent to 50 percent of the market share.

TD-SCDMA technology is used in China as an alternative to WCDMA.

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