Royalty rates for India lowest in the world: Qualcomm

Kolkata, Jul 24: Chip maker Qualcomm today claimed that the CDMA royalty rates, which is a percentage of the wholesale selling price of the handset, for the Indian market is the lowest in the world.

"The average royalties paid on devices sold in India over the past 12 months have averaged 15 per cent lower than the royalties that have been paid on devices sold in China," Qualcomm CEO Dr Paul Jacobs said in a statement.

"The royalties are far lower than the royalties that have been paid to Qualcomm in markets like Korea, Japan and the US," Jacobs said in the statement.

"Our royalty rates are somewhere below the five per cent range.

The royalties that are coming into Qualcomm are actually been used to fund research and development and to create competition among the handset manufacturers, which then brings the handset prices down," the CEO observed.

UNI